Market Update for 2/12/24
Will CPI Make or Break the Market?
In last night’s recap section I posted that 193.95 was the major short term target for this sequence and that there was no reason to chase a long today. So even free subscribers knew to take profits if they hadn’t by today. From last night’s free section seen HERE :
In the paid section I pointed out that trading above Friday’s high and failing back below would be even worse than failing 193.95, and that I would not look to get involved on the long side. You can see the bloodbath that ensued following the look above and fail. From last night’s paid section:
Price collapsed $7+ from this. The chart from today:
RTY holding 2020/2021 after holding 2015 overnight was the trigger to be long IWM or its components today:
Just a few of the names that some of us longed today:
RIVN 0.00%↑ Held 15.81-15.9 and ripped straight up where we took profits quickly.
The explosive move on the open above $72.2 netted nearly $2 in less than 30 minutes:
QQQ 0.00%↑ Like RTY, also shared on the free Markets Overview post with this key trend line that proved a good opportunity to take some profits:
The first ES long setup again worked as it has nearly every day, this time for nearly 30 handles. The overnight low was 5038.75 and higher lows were made into cash session. I mentioned I didn’t personally have much interest in this long (I was more interested in trading IWM and IWM names) and this was because of my concern for exhaustion risk which we clearly saw today.
ES had been grinding higher along this ascending trend line and the 2 standard deviation Bollinger Band:
Fortunately, we were managing longs at high of day today (Discord is EST-2):
CPI in the morning so all bets are off. Will we continue to see what may be healthy rotation, or will selling become more correlated?
Learn to Trade Doggy Style
-For those that trade SPY/SPX, there is an ES to SPY/SPX converter in Tradingview. See announcements in the Discord.
Discord policy may change to a wait period in the near future. Instructions for access (free for paid substack subscribers) are HERE. Reminder that it can take a couple days to get the invite link and ultimately assigned member status once in the “landing” area of Discord.
-To learn more about what this Substack offers, please click HERE. I would like to avoid people signing up before they know what they are getting.