Carnage across the board. /ES deliberating at significant 3800 level now & almost every S&P sector index has gapped down with the exception of materials, which had an initial gap down but has recovered and looked like will open at or potentially above Friday’s close. Bitcoin is dying, GXBT now at 24151 from hi of 69000. I don’t know what’s holding the Materials ETF up, as all 12 of the largest market cap stocks in the sector have gapped down.
Information Technology
- As a sector, clear down trend, same as everything else. Looks to be within downward channel now. Wedge did form in the bast, was broken out of but momentum was not maintained. Gap down from Thursday to Friday & now looking to be another gap down today. Could bounce off top of prior wedge trendlines. Gap fills could manifest, but the strength of panic looks to be significant & may wash out any chance of reprieve.
- NVDA | Looking like it will open near, almost directly at significant $160 support. If futures show that they will hold 3800 & even bounce from it, NVDA could be an excellent bounce & gap fill candidate. Trade around this $160 level with tight, $1 stops. Trade 5-7 shares.
- AAPL | Significant gap down from Friday’s close, not quite to next daily level of 130, but near significant 132 demand level. Could be a gap fill candidate as well depending on if the market as a whole can muster the strength to rebound. Play using 132 level as stop reference point, 7-10 shares.
- MSFT | Meteor hourly candle with massive wick in premarket (what others call Shooting Star) Seems to indicate there was demand enough to push it up, but was suppressed. AAPL & NVDA are enough exposure to the sector, as MSFT looks like it will follow the same course as these two, whatever it may be.
Consumer Staples
- As a sector, gapped down, but showing some seeming strength in the premarket & holding what looks to be significant demand area. There was considerable bounce last time this zone was approached—look to overall market strength, namely the 3800 /ES level to determine which way the momentum will manifest.
- PG | In between two significant levels, but too in the middle to commit to.
Energy
- As a sector, seems to be faltering considerable in the premarket, massive wick.
- CVX | Looks to be opening below what was playing out to be an upside wedge on daily. this break below could see considerable more downside & we are near meaningful level of 170. Gap below & Gap above this is a prime stock to play. use 170 as level to trade off, 5-10 shares.
- XOM | Looks tempting as well, near significant daily level of 197. Better to pick one and stick to it, but perhaps considering limited time left until open you can watch both, sector as a whole seems to be weak, but then again everything seems to be weak.
Financials
- Dumping & looks to be dumping more.
- GS | Near significant daily levels, optimal to use as stops. Exercise caution with this, can move considerable amount in a day. In gap fill area right now, could retrace, but if break below 278.5 manifests look to capitalize on continued flush, down to potentially 271
Consumer Discretionary
- Bearish
- AMZN | Now at a price point you can trade after split. In-between levels, trade accordingly
- HD | Looks weak, & near levels that can be traded off.
Give the market some time at the open. this is likely to be a chaotic morning, there seems to be panic flushing through every sector and stock, do not succumb to the excitement. You are prepared enough. do not let this induce you into unreasonable excitement. This is a new month & you have a fresh start. There is opportunity, but trade with patience, with reason, with conviction & calm. Watch for short covering at the open. Do not get trapped in volatility. 3800 is massive support level. Do not dismiss it lightly.
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