Daily Plan 10.10.23
Hey guys-
There was a lot of doom and gloom when the markets opened last night, with many calling for a large sell down, even a limit down, but in my plan, I had a more measured response. See below.
As expected from the weekly plan, the emini S&P500 index pushed down from that Friday close into 4300, managed to find buyers and rally back all the way up to 4375 area with a strong close on Monday cash session.
Geopolitics concerns were brushed aside as mega caps gave a good dose of momentum to the general indices.
There are lot of theories about why we did not sell off a whole lot more, but I think it is simply because at this time, the conflict still remains contained. For this to worsen, I think the US will have to get involved in some way. I think next couple of days are important. If we see conflict remain confined for another 1-2 days, I think the US chances of involvement are very few and the Biden admin, in my view will soon start calling for a ceasefire.
From the weekly plan, Gold had a good day, Gold stocks did quite well, on top of the defense sector names like LMT, NOC and RTX, which were up any where from 10-12% to 4-5%.
My levels for tomorrow
Weekly topside levels will be what I am watching tomorrow as well. More liquidity should return tomorrow and I think we should see an active session tomorrow as well.
Scenario 1: Unless we see an IB close above 4370-4380, we could see a retest of 4340 area from today.
Scenario 2: For further bullish push into 4408-4412, I think the bulls need to have an IB close above 4380. At time of this post we last traded 4370 and the levels are based on Emini S&P500.
PLTR
Palantir also did a good job of a strong rally today, along with rest of the military complex, and closed strong above 17 area.
I think as long as we hold 16-17, we could see 20 on this.
~ tic
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