Morning Brief And Trade Updates

Good morning everyone. Looking at the present situation, S&P has bounced off its 200 week moving average with strong upside volume. This morning, we are giving back some gains.

https://share.trendspider.com/chart/ES1_/50847vmsd73

I'm thinking that we might have a chance on a short-term long trade into the 3740 area. I'm using a stop down to 3688 for a tactical trade to lever up on longs in case this was really "the bottom". The S&P is now back into the 20% drawdown range for the year, which has historically been bullish for the last 10 years. In fact, it has been up every single time two weeks later.

I thought yesterday's price action in SNOW was really good, I still have some 190 calls I'm holding and I'm looking to buy some SNOW below 180 with a stop near 175. The upside target will be close to the 211 area on a tactical basis.

I also thought housing names did a great job holding yesterday. I mentioned that these alpha flows might be driven primarily by election betting odds where housing / defense stocks would need more time to understand if they are good long term holds.

Regardless, this is a nice hold in the short term with a DeMARK 13 sequential off the low and relative strength relative to the S&P

If we are looking at the total market situation, I'm seeing VTI hold the 200 week as well. I'm not seeing a lot of resistance until we retrace back to the 200 area on VTI. I would not be holding anything short here, unless its TSLA

Why TSLA? Well if the deal is going through I think Elon will have to raise some cash. He is one of the richest people in the world on paper and can easily raise the liquidity. To me, TSLA has broken down here and I foresee more pain on the horizon. I mentioned the 240 puts for Friday. I will give these a go today.

Other charts of note, XBI starting to form an inverse head and shoulders pattern

Oil is back into resistance into the weekly 9 EMA

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