Tuesday 23 April
Good Morning,
A good day yesterday for day trades in the chat room as we targeted longs from the gamma put wall level at 4975 area to the next gamma put level at 5025. In fact it turned out to be a perfect ‘fib to fib’ day on the S&P trading between the yearly 0.5 fib and the yearly .382 see below. We had some excellent day trades in the chat room yesterday with four winners from five accruing +500%, +141%, +140% & +40% - three longs and one short plus one small long trade late on expiring at 0.
Overall I remain bullish for the next 12 to 18 months as the global liquidity cycle evolves (see previous post LINK HERE) but for now the question is have we bottomed or are we in a ‘dead cat bounce scenario’ in the short term? This hinges on two things this week, mega cap tech earnings, with Google, Microsoft & Meta all reporting this week but also the PCE data on Friday.
Weekly Earnings Calendar
The Weekly 20 Moving Average
Last week the S&P closed above the weekly 20 moving average and has since held, very simply if we see a close below the weekly 20 then the next destination is our ‘All in’ level between 4700 and 4800 which coincides with the 50 week moving average. I will deploy 100% of my options account long if we get there which is not something you’ll hear me say often!
Many of you have been asking about IWM and when to enter, I am waiting for another Zweig breadth thrust to trigger, it has not triggered yet but when/if it does you’ll be the first to know. For now no trade on IWM.
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