Thursday we gapped down on index’s and most stocks, which was a good opportunity to take profits on an overnight TSLA put swing. When the market gaps down into support + a steep short term downtrend has formed, it’s more of a buying opportunity than a short opportunity. Interestingly, IWM and SPY gapped down into trendline support. I posted a screenshot in our Discord of SPY early in the morning, noting it would be a key level for SPY to hold. It did, and as expected buyers stepped in on the gap down to form a big green candle and bring it up to close slight positive (+.56%). If you’re a “bear” on the market, especially in a short term downtrend, you don’t want a gap down (where stocks open much lower) because the move is likely over for that day. You want a slight gap up (where stocks open higher), which can be sold off into, to create new lows. This is something I’ve noticed over time, and it played out perfectly yesterday.
Based on Thursday’s strength, we are seeing IWM, SPY, DIA with slight gap ups and QQQ slightly down as of 9Am. When Friday’s are in strong uptrends, they tend to run the entire day straight into the closing bell. The easiest plays IMO will be taking long scalps on stocks as they break above previous High of Day. Example of a nice setup would be TSLA over 645.50 with room to 650 / 655 / 660+ if it gets going.
Key levels to watch and set alerts *HIGHLIGHTED GREEN* near price