Tesla's Mess
Daily Plan 10.19.23
Traders-
The main expectation from last night was to see us sell down into 4370 and then expected more volatility if 4370 broke.
Both of these were good levels as we sold down about 70 handles from the overnight highs at time of this post.
I also had a good call on TSLA where I expected a test of 220s as long as we remained below 260. The earnings from TSLA were very abysmal with an extremely bad hit to the Free Cash Flow metrics. As a result, both and post earnings, we saw considerable damage to the stock, trading as low as 231.
As far as the levels go for tomorrow, my main context is to watch oil. I think this has the signs of making a move higher and surprisingly at the same time I am also seeing a good bid in the US dollar. This may be due to impending escalation in the Middle East as folks hoard US dollars. Either way this combination is not the best of news for risk on assets.
In this sense, my key level tomorrow will be 4350.
Scenario 1: I expect ongoing pressure on the emini S&P500 unless the bulls were to take back 4350. I think this could target 4300-4310 area. At the time of this post we last traded near 4345.
Scenario 2: Bulls, if they manage to take 4350 out could expect a retest of 4376 IMO.
For calm to return, I want to see the Dollar situation improve a little. For instance, I would like to see better bids in Gold above 1940-1950.
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~ Tic Toc
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