Daily Plan 12/20/22

Folks -

My main expectation was that we may sell into 3940 if the level was retested.

Here is the link to the plan.

Over the course of the night, there was some excitement in the markets caused by TSLA CEO Musk’s asking his followers via a poll, whether he should step down as Chief Twit of Twitter.

I had expected that this rally in TSLA stock will fizzle out. And fizzle out it did - we sold down from a pre market rally of about 5% to go negative and trade around down 3% at time of this blog.

From the plan last night, several other things that I noted work out as expected-

1. Sell off in HD

2. Sell off in ADBE

3. Sell off in NFLX

4. Sell off in TSLA

5. Sell off in NVDA and AAPL

I was though surprised that ORCL still manages to avoid a similar fate as it’s peers.

For the session tomorrow :

My intraday LIS for tomorrow will be 3870.

Scenario 1: I favor remaining bearish on the session tomorrow unless we were to trade above 3870. At time of this post we last traded 3848.

At this point , I will like to see a test of the lower LIS at 3800 from the weekly.

Scenario 2: Bids above 3870 could target 3900.

I do think if this 3780-3800 is traded ahead of the Friday PCE number, we could see a sharp reaction there especially if it coincides with TSLA trading 138-140. Bottomline, I think 138-140 is a key TSLA level and IMO could cause a sharp reaction and we could see some support come in albeit temporarily in the Spooz as well.

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Sending the plan a bit earlier as I have some plans later. Only 8 trading days now left in the calendar this year. There may be some sharp moves due to v low volume conditions and year end like the one that caused a brief rally from 3865 to 3880 today in the emini.

~ Tic

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