Pristine Market Analysis & Watchlist 2/9
Sidestepping the Selloff!
Team,
The downside break finally came! Way to stay disciplined during crazy market volatility these past few sessions. A measured approach to swing trading is going to fuel our success throughout the year. We’re all gonna make it 👊
-Andrew
If you haven’t upgraded to premium yet, last night’s edition had a BIG update. Here are some highlights:
We received intel that Carl Icahn bought a substantial position in S&P 500 puts yesterday, and we think he may have identified the market’s ceiling. 👀
Thanks to our cautious stance on the market in light of an elevated VVIX, and our intel on Icahn’s trade, we were positioned to sidestep today’s selloff and stay in the green! 🟢
Check out the clip below to see what you missed yesterday. Make sure you always get our top insights right away by clicking the subscribe button above!
Okay, now let’s assess today’s market damage.🔍
Equity Dashboard
Market breadth was weak at 23.6% $UVOL, and the most risk-on areas of the market, IWM and ARKK, were hit hardest. Treasuries began the session bid but weakened throughout the day. The dollar index finished red, but rallied throughout the session.
Finviz Heatmap
The cops arrived to break up the S&P 500 party, but AI stocks, NVDA and TSLA, refused to leave the dance floor! I still believe that the indices are being pinned into options expiration 2/17, and that these stocks are temporarily propping the index up.
S&P 500 ES_F Price Analysis
How it started:
How it finished:
Weekly point of control (POC) ~4115.5 - High pivot
Weekly value area low (VAL) ~4038.25 - Low pivot
The market loves to retest levels, so I would not be shocked if we reach up and tag ~4115.5 at some point over the next few days. My goal is to make sure not to get faked out by that retest!
Beware the Jaws!
The AI stocks are keeping these jaws from shutting…for now!
Sectors - Ranked by Momentum
In a sea of red, semiconductors, SOXX, European Financials, EUFN, and Chinese Internet, KWEB were the only green sectors.
Blockchain assets, BLOK, broke down.
Earnings on Tap
We are covering all of the following reports and earnings reactions in Discord tomorrow morning at 8 am, Eastern Time.
In the following sections of tonight’s update, I’ll cover my research in preparation for tomorrow’s trading session
✅ Trend Model Update - Our proprietary indicator that informs us on how aggressive/defensive to position in the market
✅Market Strategy - My trading plan
✅ Today’s Trade Blotter and Position Update
✅Daily Watchlist - We scan thousands of stocks and hand-pick the best reward/risk opportunities
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