All sectors, once again had a red day. Industrials (XLI) looking particularly bad, well below all emas on daily, looks like there’s room for continuation to the downside with no immediate resistance.
BA approaching bottom of channel. Look for bounce off channel bottom. If not, then could be considerable flush down.
UPS looks like it’s beginning to break out of massive bear flag on daily. Looks like it could flush to 178.
UNP 229 will likely be significant support. Does not look like major drop will manifest after this point, but should be level to watch. If market is bleading & sector continues to be week, could be move down.
TSLA Missed the fucking move I’d planned for. Would likely have been unable or unwilling to take it anyways as it would have necessitated me using options, since there are no TSLA shares to short. But still, incredibly frustrating to see analysis play out precisely as I’d charted & anticipated. There was a gap below a level, I’d even set an alert, but I’m guessing I didn’t set it to notify my phone, & since I wasn’t at the charts I was unable to even consider capitalizing. Finished reading market wizards today, and there’s a section near the end addressing this exact issue: “Many traders fail not so much because of the trades they make when they are wrong, but rather because of the trades they don’t make when they are right.” pg. 444. This was a month making play, that I’d charted correctly & would have been easy to take—it was clean. If I made one play like this per month I’d be more profitable than I was all of last year.
BABA potentially setting up for play like TSLA today. There is massive gap below where it closed today. If there is downside pressure tomorrow it could flush through the gap. Look for this play tomorrow.
All Information Tech is dying. AAPL breaching 200 day Moving Average. Look for continuation to the downside tomorrow.
/ES 4130 is MASSIVE level of support, but if it can be absorbed, below 4050 is a great gap opportunity down to 4033. This is a play worth risking option premium on. Your goal is to be green for the month. You have some cushion, but you’ve been playing incredibly small. Book also said having monthly goals can be counter intuitive, for the reason that it can hinder your taking action at the right time or taking too much action at the wrong time, all arbitrary self imposed ideas of benchmarks. Keep this in mind. It would be worth the bolstering of confidence to have a green month, even if it’s cautioned to think that way.
/ES same goes for below 4022. Massive empty air below this level all the way to 4000. On its ascent, /ES didn’t stop at all at 4000 which one would have assumed to be a massive level.
Moving forward. Look at broad level sector, then the 12 view chart of issues within sectors, then where you see hints of promise, open the chart in the ‘Larger Analysis’ view. This is where you’re able to see true opportunities. When you do the work, you come to realize your analysis is sound. Do the work, believe in it, & you will find success.