Okay, fess up … who let the bull sleep in today? Or was it worse and someone fed them too many drinks at their NYE celebration? I mean really! We started a tear late last night and then after a strong opening the market pulled. I mean sheez, look at AAPL alone. Traded strong in pre-market above 131..and then poof she went down for the count and big time too. After some negotiation the bull decided to rustle up some bids and we pushed once again from that 3820 level..which hmm..if we didn’t have that as part of our Expected Moves indicator for the day.
We are constantly striving to improve and refine our system, and we appreciate your patience and understanding as we grow. In the near future, we will be offering paid subscriptions with trials at the onset for you to try out the full package. In the meantime, we will continue to share our analysis and insights in the format outlined in this newsletter. We hope that our analysis and insights are helpful, educational, and informative tools for you as you navigate the financial markets. As always, we recommend doing your own research and consulting with a financial advisor before making any investment decisions, as nothing we say or suggest should be taken as a recommendation to buy, sell, or hedge any financial instruments ( please read our disclaimer ).
Today’s review
Despite the tumultuous start to the day, our levels for the tickers analyzed last night were pretty interesting. In our inaugural update last night we shared details from our Expected Move indicator, which highlights the expected moves for various tickers. You can think of these as a guidepost market makers/hedgers/etc. are working hard to keep the market inside of for the time period. In our case we shared levels last night for today’s (January 3rd) expected moves. What we have seen in our back-testing to date is that if/when we break an expected move level with some gumption, more often than not tend to test/touch the next expected move level. Take a look at AAPL and the break of that first expected move level targeted the Expected Move (EM) Level 2 with some conviction. Or, look at TSLA and it’s massive break of EM of levels and and 2…to stop at EM level 3, just about to the tick.
Our point is when we combine our proprietary indicators(bots) and brains there is some exceptional edge. Our prep image below from Monday afternoon combined the automation (bots) with some intelligence (brains) and yielded great prep for today. In fact if you were truly prepped there were lots of opportunities this morning after the flush for 10 to 15 point chunks on ES alone...and that really is POINTS not TICKS.
Lol, just make sure if you setup an ATM strategy (Automated Trade Management) you leave yourself some room…That first exit at 9:35 was definitely not intentional and a result of a poorly human created ATM strategy.
Tomorrow’s prep / high interest zones for:
Wednesday January 4th, 2023
In this update, we have included details and notes on tickers in the categories of Breadth, Overall, Meme, Forex / AG futures. We have also included a section on our high-interest zones for tomorrow.
Ticker details / notes:
First we’ll note that we group tickers into a few categories. There is “Breadth” which you can think of as tickers like AAPL, AMZN, TSLA, ETFs such as XLC, XLF, XLK and of course the main indices…I mean, you know … these are the big companies and indices. So we break up our analysis in Breadth, Overall, Meme and new additions are the Forex and AG futures.
Breadth
ERX [65.50 - 64.65], [59.76 - 58.83]
QQQ [273.05 - 272.14]
UNH [532.11 - 530.01], [525.43 - 523.97], [512.94 - 510.66]
MCD [268.38 - 267.80]
IWM [178.23 - 177.92]
DPST [23.12 - 22.95]
SPXS [23.34 - 23.13], [21.81 - 21.70]
SDS [45.34 - 45.17]
ERY [32.90 - 32.68]
RTY_F [1,806.30 - 1,796.60]
AMD [66.19 - 65.98]
SPY [389.83 - 389.00], [385.85 - 385.08]
ES_F [3,912.50 - 3,900.50], [3,810.00 - 3,800.75]
MSFT [246.39 - 245.62]
TZA [37.14 - 36.83]
XLV [137.18 - 137.00], [134.54 - 134.47]
TLT [102.99 - 102.86]
AAPL [129.64 - 129.04]
Overall
FISV [99.88 - 99.59]
MCHP [71.19 - 70.77]
COP [109.64 - 109.13]
FCX [38.32 - 38.07]
ELV [494.41 - 492.28]
OKE [62.39 - 62.11]
ISRG [270.00 - 269.14]
PRNT [20.76 - 20.73]
KMI [18.06 - 18.00]
HUM 523.06 - 519.60]
PEG [63.18 - 62.99]
ALGN [204.00 - 202.64]
LIN [313.61 - 313.33]
WMB [32.50 - 32.39]
PINS [24.08 - 23.79]
C [45.29 - 45.23]
MPC [114.74 - 113.96]
ADSK [191.67 - 190.23]
FOREX Futes
6E_F [1.06420 - 1.06125]
6A_F [0.66915 - 0.66875]
AG Futes
No high scoring zones tomorrow.
Meme
No high scoring zones tomorrow.
Wait, WAIT, WAIT!!!..slow your roll … is probably what you are thinking / saying. WTH do all these price levels mean in the first place. The computation of these zones is what our algorithm produces by scanning (currently) hundreds of tickers to search for the highest quality zones to watch. These zones don’t mean take a trade blindly or immediately take the Short/Long/Hedge, they are just that “Zones” to Watch or as we’ve been calling them #RoyalFlushCheatCodes. They are #RoyalFlush zones because we’ve identified multiple pieces of evidence in that price area that could/should draw interest. What really gets exciting, is running this to prep the day ahead and real-time intraday because the zones update based upon price action. They will move previously identified VWAPs, look for extreme ADR readings and other pieces of evidence that might now possibly be in play given a gap/flush/etc
Expected move levels for Wednesday January 4th, 2023
Symmetrical extreme readings
In a future post we will delve further into what these mean, but you can also check out things such as Disparity Index to understand some basics.
That’s all for tonight, we’d like to thank you for joining us on this journey, and we look forward to sharing more insights with you in the future.
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