Officially in bear market territory. My First real bear market if this continues to play out. Head & Shoulders on the indices seems to have played out almost text book. TAST insight was eerily accurate. We’ve reached minimum of measuring rule, likely to see more. Utilities got absolutely ravaged yesterday
Consumer Discretionary
- Index at critical demand area, forming pattern that most indexes have formed: h. Below the 136 level looks to be more downside. Index exhibiting healthy premarket strength.
- AMZN | Seems to have been an attempt at a gap up this morning but swiftly suppressed. PM still exhibiting some strength at levels. If it opens near 104 level could be a good base to play from to upside or downside.
- TGT | Bounced off significant 144 Daily level yesterday & holding above it PM. Below this level is considerable gap down. Look to exploit this should the level be breached & the overall market continue to die.
- HD | Follow market sentiment, but looks to be showcasing some strength in pm. Opening near meaningful levels that may be easily traded off, but nothing immediately standout other than the fact that it has bounced multiple times from 280 level.
Consumer Staples
- Another H pattern on index at massive 70 support. Could see bounce if demand holds here but it’s been tested 3, almost 4 times over the last year. Index exhibiting reasonable premarket strength
- PG | Looks to have chosen a direction after watching yesterday between levels. Broke through lower daily level, seems to be approaching it pre market. Could be solid level to short from, or at the least, use as a risk base.
Energy
- Index bounced off 50 day EMA with considerable volume. Index exhibiting considerable premarket strength.
- XOM | Gapped up & approaching significant 97 level, which is a great place to play off. above it just .75 is another massive gap to the upside, & to the downside there is a dollar move. Play off 97 level depending on market sentiment. 10 shares is reasonable. Possible candidate to scale in more if gaps manifest. Seems to be exhibiting strength in PM, upside might be play. Oil is pushing & breaking what is meaningful 122 level (/CL)
- CVX | Similar price action to XOM, but not opening as close to significant levels. Might be worth keeping an eye on but XOM seems to be more promising play & in easier place to base risk from.
Financials
- Shellacked but showing demand. Extraordinary volume on selloff yesterday, index exhibiting modest premarket strength.
- JPM | Looks to have potential, but not opening close enough to levels to base risk form. Set alert for gap zone to the upside.
Real Estate
- Considerable premarket strength after massive shellacking yesterday. broke through h pattern with momentum, could this be leading indicator into what other sectors will do?
- PLD | If demand can carry this back above 110 there is a massive nearly 15 point gap that could be filled. There was extraordinary volume on the selloff yesterday and daily candle closed suggesting demand.
Industrials
- Exhibiting meager premarket strength.
- UPS | Premarket strength near levels Looks promising.
Information Technology
- ORCL | Insane gap up on earnings. Levels are in place, seems like could be ripe for downside. Afterhours price action shot up on earnings, premarket has seen precipitous decline. Opening near meaningful levels, look to play 10 shares.
You’re prepared enough. There are some decent plays available, but nothing that seems extraordinarily clear cut. You’ve charted good levels & have reasonable thesis on each . Looks like energy is going to be ripe with opportunity, but do not get ahead of yourself. Have patience. There is a fed meeting tomorrow, there is likely to be volatility today. Have patience, exercise caution. Give the market time to open up.
Must create watchlists of each sector with the 12 stocks you have in each sector