Tuesday's Mess Met With a Big Gap-Up

Trading Apple, Bitcoin, S&P, Gold, Oil & the VIX.

Mar 09, 2022

NYSE Breadth: 64.5% Upside Volume
NASDAQ Breadth: 60.1% Upside Volume

Despite the market finishing lower on the day, the NYSE and NASDAQ churned out positive breadth readings, which was a bit surprising. The market’s incredible trading ranges are taking a toll on traders.

From peak to trough, Tuesday’s trading range in the ES gave us swings of: 62 points, 122 points, 94 points, 58 points and 90 points. This probably sums it up a little better:

Danny Kirsch, CFA @danny_kirsch

8 intraday moves of 1% in SPX today...same quantity of 1% moves all of 2017. Everything is fine.

Game Plan

I hope yesterday’s video helped. I apologize on the time it was released. Upload times are very difficult to predict, but we will start doing them at night so we can release them earlier in the morning! However, I urge you to check it out if you have a few minutes.

For now, the ES is up 88 handles from Tuesday’s settlement and trading 4238 as of 7:45 ET.

While it’s always possible we get a gap-and-go to the upside, I have made it pretty clear so far this year that I’m not a fan of gap-up opens in a downtrend. At least from the buy-side.

The SPY is up 1.8% in the pre-market. Can we really build off of that?

I don’t want to force anything today. We’ve done a great job the last two days navigating this mudslide. Let’s see how the gap-up is handled, then apply some levels to it to see if there’s anything to make of it.

S&P 500 — ES

Feel free to extrapolate this layout to the SPY.

I can’t help but think the 4275 area remains relevant. It’s yesterday’s high and now the declining 10-day ema comes into play near it. If the ES can power through it, the 4310 to 4312 zone could be next.

Here are the key levels:

ES and SPY, Apple, Crude, Gold, Bitcoin & the VIX

AAPL — We were able to get a great cover in our Apple short and now we can put it back on the go-to list. Don’t let a winner turn to a loser.

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Economic Outlook

Disclaimer: Charts and analysis are for discussion and education purposes only. I am not a financial advisor, do not give financial advice and am not recommending the buying or selling of any security.

Remember: Not all setups will trigger. Not all setups will be profitable. Not all setups should be taken. These are simply the setups that I have put together for years on my own and what I watch as part of my own “game plan” coming into each day. Good luck!

Future Blue Chips