My Plan & Strategy from now until year-end: Specific SPX Bounce Regions I'm looking at. Also, a note on Tesla.

Key Levels where I believe a bounce will emerge (for however long it may last)

Note: Due to market volatility, I will providing bonus after-market planning and strategy to help the good Members succeed in this environment. We have done tremendously. Tremendously.

But we will not celebrate while the general public feels anxiety and pressure. We will stay humble, and celebrate when I see ALL of you winning again. Trust me, it is no fun to be bearish. And I look forward to being bullish when the time is right, so that we all win together.

This strategy post will be simultaneously posted in my Patreon Community.

This note will focus a bit more on the mechanics behind understanding price action beyond what the typical retail investor can see and assess. My views on Fundamentals and Macro can be found in my most recent reports. Please read those for context.

Many folks have asked me if I will release a more comprehensive educational program to teach navigating markets like a professional. I will, but this will take place in 2023. Please remain patient. I take product development very seriously, and it cannot be rushed. We can see the success of our Investment Community in its current format. The planning and thought that goes into my current Community has been intense, as I’m sure you’ve seen so far! All Patreon and Substack members will get preferred pricing when new programs are released.

---

Your edge exists only because you put in more work than others. It’s that simple.

Members,

I want to start off this note by sharing with you what I call the 4 Personas of the market.

1. Folks who are bullish, and are long the market

2. Folks who are bearish, and are short the market

3. Folks who are bullish, but on the sidelines

4. Folks who are bearish, but are on the sidelines

In almost all instances, you will partake in being one of these personas. Even if you are in cash, from a behavioral bias standpoint, you will STILL be one of these 4 personas. You’ll just be either #3 or #4.

Every single trading day, the market will advertise prices and the financial media will do its best to compel the 4 Personas to transact. That’s what makes a Market.

Each of these 4 personas are responsible for the tug of war between the constantly moving prices that set supply and demand to equilibrium. Personas #1 & 2 drive the current auction of the market. Personas #3 & 4 add liquidity to the next stage of the market’s movement.

It is VERY important to assess what Personas #3 and #4 MAY or MAY NOT do once markets get to certain key levels.

As you can logically deduce, it is mathematically impossible for all 4 Personas to all win at the same time.

For this reason, you will often see someone, somewhere often express their joy in their positioning. At the same time, there will also be someone, somewhere who are dismayed by their positioning.

Now let’s ask the question: how are these 4 personas feeling after the recent market movement, especially personas #1 and 2?

I can answer this for you in simple terms: Not Good.

Emini Weekly Chart

From a higher timeframe (the weekly chart), there’s been a group of investors that attempted to buy the breakout at 4180 (this is a chart of the Emini S&P 500 Futures). See the circle above.

There’s also been a group of investors that went short in the 3500 region. See the circle above.

Both groups are getting severely punished - even though the market hasn’t really gone anywhere if we think about the intermediate-term direction since July Summer!

What this means is that in this market, bears have lost. Bulls have lost. The market has done its absolute best to cause max pain to the maximum number of participants.

This is because most folks haven’t planned ahead of time. But we’re going to change that, aren’t we?

In this note, we’re going to assess where the markets are likely heading next by understanding Supply & Demand.

I’ve marked key Supply & Demand Levels for the Emini S&P 500 on the higher timeframes, and done all the work for you. All you need to do is to stay patient, wait for the levels to play out based on your individual timeframe and goals, and transact with a plan (and not on emotions/gut feeling).

And then at the end of this note, some thoughts on Tesla and an updated opinion on how to navigate this name where I see a potential opportunity looming.