Daily Plan 8.3.23
Hey folks -
Yet another amazing day around my levels. I am not going to go to each one of them, but to summarize, at the open, I was bearish below 4580/4574 and these were the session highs. I then expected a bounce at 4550 which we got but the bounce was weak and then I tweeted that this will probably not stand.
The level broke and we traded down to my longer term weekly level at 4530 and we closed the session there.
If you have not, download the app and turn on the notifications. Chats are for the paid subscribers and are included at no extra cost to them. Volatility is rising again. Do not miss it!
In an active market, things can move very fast from one level to another. Stay on top of these.
These can be long sessions but if you can focus, you can do well.
Another thing I want to share is that any of these high beta stocks, they will do better when the general market is going good and they will do worst when the general market is doing not so good. This is common sense but easy to lose sight of. However, at time you get into something like a CVNA or a MARA which is still up 5% even on a day like this !
My levels for tomorrow
For the auction tomorrow, I am following a 2 day volatility template.
This means I am expecting one of the below 2 scenarios :
More volatility and sell off (below 4500).
More volatility but balancing tomorrow (between 4500 and 4550).
I think if we see Scenario 2 tomorrow, this could signal a retest of some of the recent highs this week in next couple of weeks or so but Scenario 1 above could bring more sell off into 4425s.
We have taken out the key level at 4550 today which was a thorn by side of the bears. However we have closed here right above 4510 which is an important level.
I said many weeks ago that 4490-4500 is an important level.
I said if the earnings seasons rolls by and we are still above 4490 , that could lead to a retest of these recent highs at 4630.
However if we are below 4490 once earnings season goes by, then I think we have seen swing highs at 4630.
Now the elephant in the room is the AAPL earnings tomorrow. Thus far the earnings season has been sort of meh. However, AAPL earnings can cause some excitement even if it is temporary.
With this said, my key levels tomorrow will be 4550 and 4510.
Scenario 1: I expect more range bound action between the two unless either is broken.
Scenario 2: If 4550 is broken to the upside, I think we can see resistance come in near 4580 for a push back down into 4540.
Longer term, I will cover this in weekly plan as well, but if we see support come in at 4510-4520 area, we could retest some of the highs from this week.
~ trader tic
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