Daily Plan 12/16
Folks-
A quick recap of the session before I cover what I am expecting tomorrow and my levels.
Pre-FOMC, I was expecting a range formation between 4600/4630 and this is exactly how it panned out. There were multiple rangebound opportunities between 4600/4630 pre FOMC.
After Pre-FOMC, per my scenario 1 below , I wanted to be bullish, if the first market reaction was to bid above 4630/4640 and look for any dips. This is exactly what happened. ASAP after the minutes were released, S&P500 emini bid upto 4640 and all dips were subsequently bought. Now trading 70 points point higher at 4698.
See this link if you have not already read the plan (decided to open it up for folks to highlight order flow levels)! My FOMC Play
My take on FOMC:
This FOMC event was bullish for equities and bearish for Gold as the market likes Powell’s confidence about the economy being hot. While the participants do believe him the rates are indeed going to be raised. This is why GOLD is selling off. I personally do not think any rate hikes will happen, may be 1 or 2 next year and then easing again.
Below are my levels for tomorrow:
Orderflow pivot is 4667.
I want to be bearish if open or offered below 4667 in early AM, targets 4620 followed by 4570.
As long as 4667 holds, dips may be bought, especially if we open or bid above 4667. My target in this case will be recent highs at 4710 and then let the market make up it’s mind.
At time of this post, emini S&P500 just traded ~4698.
What else?
A nice, plum 40 point bounce in TSLA after I got in on the dip yesterday. See below. I want to wait for a day or two for dust to settle before getting into other stock names. As the real FOMC reaction may start tonight or tomorrow.
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great stuff Tic !