Did you miss the boat? FOMC triggers rally, overnight gap up. Does SPY dump or continue higher? Plan for trading Thursday Dec 14.
Small Caps that have gone parabolic
Yesterday was simply amazing. Frustrating start, but then got back to plan. I took a couple of trades yesterday nailing dips but getting stopped on no follow through. That IS OK. Then stopped trading and executed FOMC trading process — wait until after FOMC and 2:30pm to open trades for headache free trading. And it paid off!
How well?
4670c for $12.50 stops at 11.50. -- hit $40! exit $21 and $36
4680p for $0.70 hit $3.20 for 7R. exit $3
4695c round 1 for $2 out $7
4695c round 2 for $3 out 6 and 12(hold into close)
That is 4 trades yielding 100-300% fave value gains!
Doing something different.. Watch this video to see how I planned these trades.
Sign up to Daily Market Edge to get these levels at edumomo.com.
For the sake of time I won’t review the TSLA trades but overall I flipped twice following process and it paid both times. Leave a comment and I’ll make a blog / video about it.
FOMC
So the key words I heard from JP that has been bullish into mid Jan — “peak rates”. That is a huge change from previous stance about hiking until mission accomplished. He also said that they may start cutting rates next year since it takes time for cuts to affect economy.
Based on this, I think market could rally into Jan on euphoria and I doubt folks will begin selling this year for profits. They will sell in Jan to lock in and have it be on their 2024 tax bill.
Fed rate pivot last time rallied for another month and then began a large sell off. (I’ll have to dig to get you references but running out of time this morning)
Small Caps massive rally
Be sure to pay attention to these names for a scalp trade (long or short). They are rocketing.
Trade Plan for Thursday Dec 14
I feel like a bunch of names are very extended so it will be hard to go long unless I see strong trend and then a yank into key support and then a quick rally back higher. Market is VERY extended and I do expect a profit taking day to show up any day now — I’ll be find losing on that day, until ti comes will continue to look for BTFD plays.
I’m going to sound like a broken record, but the record keeps playing and paying. Be systematic and process driven.
Given the gap up, I will look for a gap up reversal and look for strong names to fill some of the gap establish support and then continue higher.
SPY 0.00%↑ - gap fill or back test 471 and target 474-476 (474-476, hawk for short scalp)
AAPL 0.00%↑ - back test 196.50, push toward 200+ into tomorrow
TSLA 0.00%↑ - backtest 236-238, risk vs 235 break for 250+ into next week
NVDA 0.00%↑ - dips on 477-480 for 485+ tomorrow, 500+ next week
RKT 0.00%↑ - dip and rip off 11-11.50 in coming days for possible 12.50+ move.
CAVA 0.00%↑ - massive short squeeze happening. could see 45-46 by tomorrow and then will look for a short.
UPST 0.00%↑ - dip and rip off of 41.50/ 42.50 area will consider long. Any dip into 38 into coming week
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