Daily Plan 1.9.24
Folks!
Massive action in names I shared last night. And I massive!
A stock like NVDA was up 7% almost with 0 pullbacks of any import.
Almost great action in every single name shared by me last night. GOOG, TSLA, NVDA, AVGO, TEVA. You name it.
Even a name like SBUX was up today.
This is not counting the action in the SPX which I called for being near the swing low.
Now some may say the price points did not exactly trade on the support levels.
This is true and justified take.
However, I can look at it two ways. Either I was bearish or bullish coming into the session.
If I was not bearish, on a day like this, that alone is a win. Like how many folks got trounced today at the open? A lot.
Plus, in my morning chat I had shared my view about constructive action overnight.
Anyways, a massive day for the bulls.
With the close today at 4800, this puts the 4730-4740 level in focus.
The bulls just need to defend it. The bears now need to take it out.
This is why I am thinking 4740 could be a major level tomorrow.
Scenario 1: Dips if any into 4740 could be supported for a move back into 4770.
Scenario 2: If the bulls do not want to see 4740 again, then I think they need to defend 4770 tomorrow. This could be a secondary support level tomorrow unless broken.
In intraday time frames, depending on the volatility, I consider 5-10 points as a decent measure to see if the level is broken or not. Really good levels won’t even take a 5 point heat against them. Anything above that for me is overdoing it personally.
NVDA
With NVDA, I shared my longer term view last night. You can read about it in the last nightly plan. I am not a longer term bear on this yet.
However, with the action today, a lot of folks were caught unguarded. For the weekly expiry, the 500 PUT got decimated today. It is now bid at 1 dollar.
If these prices hold here, I think this put will lose value rapidly heading into Friday. However if we do see some short term sell off tomorrow or Wednesday, this PUT could still have some value. Purely crapshoot but wanted to share this PUT regardless.
Generally I think if we open at 4790 on the main index and hold thru first hour, this PUT could go down to 40-60 cents and may be that is a better crapshoot risk and reward. In other words, it is a lotto as many furus like to call them.
~ toc
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