Jesus, Utilities dumped even more. Just another fine example that there is no such thing as stock or even a sector that has “fallen too far it has to bounce.” This was one of the sectors I neglected to watch for trading yesterday because this, even if subconsciously, was what I was thinking would play out. I feel the same way about it now, especially seeing the bit of tail of a wick on the daily candle of the utilities index from yesterday.
Almost all sectors seem to be sustaining demand in the premarket. There is an FOMC meeting today, where, apparently the consensus is that the market has priced in a 75 basis point rate hike, but Jerome Powell has only ever stated that he would implement a 50 point basis hike. Something along those lines. Need to become more educated in financial policy. This is still largely gibberish to me though I have made some strides.
Information Technology
- MSFT | Looking like it will open close to significant daily level, nor far above is a gap zone. Showing premarket strength, there has been a gap up. If stock can hold above 160 & showcase meaningful demand, then this looks like a promising play to the upside. May be necessary to wait until FOMC meeting, not sure what to expect prior to meeting which is at 11am EST (8am). Higher priced stock, best to trade 5 shares or less, or if you’re planning on going in heavier, to keep tight stops. 5 shares or left is best, do not relinquish what little monthly profits you’ve accumulated so far
- AAPL | Similar to MSFT but the level AAPL needs to overcome to reach the gap area is a daily one & it’s not yet reached it in premarket, seems more likely to be a move down, or at least, a move up then a rejection of the 135 level
- NVDA | similar to both AAPL & MSFT, but this name is hovering right at significant 160 daily level, having pushed past it briefly in premarket. A hold above 160 could spell demand sufficient to push to 163, If this manifests, it will then have reached gap level & if gap fills, could push to 170. Looks like this will be be another name contingent on Fed meeting, but this name looks like it has significant potential.
Consumer Staples
- COST | Gapped up & yesterday’s price action showcased deliberation but definite demand at 450 level.
Industrials
- BA | Upside | Looks promising, gapping up into prior gap zone, but hasn’t filled it, strong bullish candle close yesterday with considerable volume. Looks to be best play I’ve found so far.
Communication Services
- TMUS | Looked good, but too small
- META | Charted, looks like there’s some room to the upside to 170.
Feeling lethargic, not tired, but these thorough game plans are draining me. Need to bring back the system I had for game planning options, that distilled the levels & bias I had, then had section for notes if I needed or wanted to fill it out. BA still looks like best bet, be cautious though, this name moves quickly. Give the market some time. Fed meeting today, many gap ups so would not be surprised to see initial selloff. NVDA also looks promising if it can hold above daily 160 level. be careful with COST. MST looks ok but there is wick in premarket which seems to forbode downside potential. PLD entered MASSIVE gap yesterday, if it can surpass it’s highs yesterday could continue to fill it.
TMUS (Com Serv)