2/15 Daily Market Note: Rest of Market defends NVDA. Successfully (for now).
NVDA is supported by the other Friends in the market
Hey Folks -
Honestly a pretty good session today in terms of our intraday planning. Still no long-term attractive opportunities yet, so my commentary has been focused on how the day by day action may unfold.
See below that in our Pre-Market sent to friends on Whatsapp that I was looking for the following characteristics of today’s session:
My belief was that Initial Jobless Claims and Retail Sales would have a limited impact - no more than 20-30 basis points - on indices.
That 17885-17900 on NQ (Nasdaq-100 Proxy) would be my tune whether I take a view that price would accelerate higher or accelerate lower (it accelerated lower).
That NVDA below 730-735 would weigh down on broad markets.
Apple has been weak, but until it breaks below 179, I don’t see it as a “big concern”.
I didn’t like what I saw on the tech side this morning after the break of 17885, and took a small position at NQ 17875 against the market and then bought-to-cover around 17825-17835.
I personally dislike shorting and it’s my least used tool, but elevated levels like we have now offer intraday 50-70 points of scalping opportunities. I do not believe swinging puts or long-term shorts have any reasonable chance of survival.
The only downside ideas that work in a bull market only apply on an intraday basis. This naturally takes more skill to execute, but I’ve found the time invested in learning intraday to be fruitful.
Below, I will talk about why I saw 17885-17900 NQ as a key level for today where action could accelerate above or below.
As shown recently, I’ve taken serious efforts to uplevel my skillsets. Before my research & execution was limited to strictly intermediate-term and long-term ideas. Given the lack of what I believe to be adequate margin of safety for long-term valuation, I am forced to venture into the realm of intraday activities where I stalk levels, patiently wait for them, and pursue action only when something is worth pursuing.
I am learning new things every day with a vigorous passion, and look forward to constantly sharing my newfound knowledge with everyone.
Strategy below why Nasdaq 100’s 17885-17900 level was so important today, and what may come next.