Tomorrow morning I am buying $75,000 worth of calls on this stock.
If you do not know, Amazon, Google, Meta, Tesla and Apple have invested over $100 BILLION DOLLARS combined into Ai and now the Data Center Race has started.
I will tell you right now that 99% of investors will miss out on the next Nvidia like mover. I WILL NOT and my followers will not as well.
I am only sending this stock to people who LIKE/RETWEET this post.
What stock do you think it is?
📈 $SPY DOUBLE BOTTOM?
• WIth NFP numbers to come out soon the market seems to have made a double bottom with some bullish divergence showing up.
• Bulls breaking 585 we are looking at a 10 point move higher towards 596 and then 600 coming up.
• Bears need a gap down at this point and keep it open for the day.
• The bear gap at 613 is still open and I believe we will see that filling in March with a potential short squeeze style of a move into the end of Quarter and March.
• 572 is the level for the bears to break.
FLOW UPDATE: Many bullish positions and far OTM position taken on $GOOGL $AMZN $NVDA $TSLA and $MSFT
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📈 $SPY ISLAND TOP DISMANTLED!
• Bulls did the right thing with a massive move to fill the island top to dismantle it and keep it only to a normal bear gap.
• While the fill of the bear gap will act as resistance, can Powell just blast us through it tomorrow?
• GDP PCE also in the mix this week.
• Looking for the bear gap fill resistance and 602 to buy the dip. This is still an amazing bull market to not look for strength.
• When the market shifts in when we will start riding the bears until then it is a bull parade!
TRADE IDEA OF THE WEEK: We played $GOOGL again today from .8 to 1.2. Yesterday from 1 to 1.5. Absolutely killing the TRADE IDEA OF THE WEEK. Alerted it for free both times.
FLOW UPDATE: $BABA 100C were massively on flow end of day. $GOOGL 200C and 205C were hot today. $AMZN 240C holder got out most I think and he was up 30% while our calls went 150%+. $MSFT $META both bullish bets on flow remain.
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📈 $SPY I WAS WRONG! SADLY....
• I have predicted that January ending is when we make new all time highs and it came a week early. That is how I was wrong and bears are very smart.
• There is nothing much here for the bears honestly.
• Massive week in the mix this one with FOMC, PCE and GDP numbers coming out.
• We have 4/7 Mag 7 Stocks reporting this week as well on Wednesday
• I will be looking to size down my positions and waiting to see some dips to retest the trendline that was broken last week which will act as support for me to enter.
• This above statement does not mean that I am expecting a dip next week. It merely means that is the zone I will be targeting to deploy capital with a well defined stop loss.
• Breaking 410.5 market can see much higher with an extended target to 614 and 617.5 above.
• Any dip towards 600 will be buy the dip territory.
There are few things to watch for when Powell is out.
1. CPI - specially the core ticked down. Last year same timeframe he said we typically see an uptick in CPI in the first quarter of the year.
2. We have a new president who openly challenges the independence of the FED.
TRADE IDEA OF THE WEEK: $GOOG will be posted on Youtube shortly.
FLOW UPDATE: Will be reported on a day to day bases.
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📈 $SPY MORE BEAR GAPS!
• SPY bears ave been eating away on the Election ISLAND BOTTOM slowly and it is extremely hard to play this slow drill.
• I have seen a market like this easy to play the bounce than try to play the dip, that is it is a stock pickers market and you HAVE TO know the relative strength and weakness w.r.t the indexes to be able to make money.
• Agreed it is a hectic environment and this is where good traders stand out from the rest. React that Predict.
• Predicting and trying to snipe out gains is fine too, as long as you are well versed with your risk management strategy.
• The market currently is in a broad range and again picking the right stocks is the right way to go, while the breadth remains NOT SO BAD.
• Anyway, sticking to the levels here, market will have a nice bounce once the ISLAND BOTTOM is filled and I am waiting for that to happen to possibly look for another lower high, which is the trend in the short term,. Lower highs and lower lows. i.e Downtrend.
• I also want to highlight and talk about the head and shoulders pattern that is developed on the daily which can produce another 5% downtrend from here but in a longer term picture and the bull market we are in these generally tend to be bear traps when the fear in the market peaks.
• So will be watching the 577 level closely for the weekly plays into CPI and PPI.
• Every bear gap fill will act as resistance and bulls have quite a bit of work to do.
• Again to be fair with the bulls watch if we get a solid bounce of CPI and PPI. Market turning up the hear is a bullish divergence confirmation that is brewing in the market currently. (55% probability scenario)
• If we gap under the island bottom and retain it (30% possibility), god save the bulls!
TRADE IDEA OF THE WEEK: $LLY
FLOW UPDATE: Will be provided real time and the significant flow to look for.
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📈 $SPX “UP”TOBER SHENANIGANS?
• SPX climbed 0.6% this week making new highs after MU Earnings.
• As mentioned before up until elections we should see $VIX holding 15-17 range and every pop towards 20 being sold off.
• The targets above remain the same with 5800 as the target above before elections and slow nudge towards 6000 by end of year or Q1 of 2025.
• One thing that I have noticed and I am not bearish yet is the major negative divergence I am seeing on the RSi.
• Although currently the RSI and MADC are in full favor of the bulls this bearish divergence can be something to keep in mind because when it materializes we end up having a 15% corrections in the market.
• If you are trading the market on a day to day basis you trade the price action. Dont guess when this divergence materializes.
• Breadth is remaining strong with Nasdaq lagging and Dow making new ATHs. Chips looking good with most hitting the major trend lines where there is resistance expected to form lower highs.
Seasonality: October is considered “Up”tober but during election year it is one of the most bearish months with an average return of -1%. But as mentioned about the levels in our weekend live call, this weakness can be used to build some bullish positions into the best month during election years.
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