Market started with a rest day yesterday, faking everyone out left right and center. However, a late day squeeze flushed a good deal of shorts out so they could drop it in the PM, falling 1.23% at the time. Bias is short today. Looking for retests of key levels. Value area from prior day is 400 - indicated by the grey box and volume profile on the right. Retest level on SPY is 398.
NVDA - Inside bar play today. Key level is 181.60, coincides with the insider bar downside level and a key prior pivot top. Two trades on this. Momentum scalp short on the open - looking for flags near key level. Then there is a retest short if the market provides it. However, since this appears to be the start of a new active sequence down, I would favor strong downside momentum and not expect strong pullbacks to reenter/add.
W - clear rejection higher on wayfair. Gapping under the day 1 support. Gap fill short to 49 area.
NEE - If nextEra Energy can show weakness at 80.32, next stop is 79.20. The risk reward on this is probably not favorable unless there is a shove off the open into resistance at 82. However, everyone for the last few months who bought is now under water. Capitulation type of trade is a possibility as we are down 2.5 ATRs in the PM.
NVDA - Inside bar play today. Key level is 181.60, coincides with the insider bar downside level and a key prior pivot top. Two trades on this. Momentum scalp short on the open - looking for flags near key level. Then there is a retest short if the market provides it. However, since this appears to be the start of a new active sequence down, I would favor strong downside momentum and not expect strong pullbacks to reenter/add.
W - clear rejection higher on wayfair. Gapping under the day 1 support. Gap fill short to 49 area.
NEE - If nextEra Energy can show weakness at 80.32, next stop is 79.20. The risk reward on this is probably not favorable unless there is a shove off the open into resistance at 82. However, everyone for the last few months who bought is now under water. Capitulation type of trade is a possibility as we are down 2.5 ATRs in the PM.
Comment:
#W - Entered at the first key level for #W. Out majority at low of day. Tried to re-short on break of LOD but got out after seeing the capitulation volume below.