Tuesday August 8, 2023 |
G. Allan Collins 8:25 AM
Good Morning,
I hope everyone had a great trading day. The S&P 500 Tracking ETF AKA SPY was up 0.87 to close at 450.71, which is right in the critical resistance Zone. I mentioned yesterday to “Sell the Dead Cat Bounce” we are in a unique situation, where we have what I call the Blind Bull Scenario. There are way too many Bulls predicting we hit new highs when it is obvious to see that we are headed south and most likely retesting the lows in the next Sixty days or less. Earnings season was horrible with valuations over extended and the SPY is at a 20 multiple in the Month of August which is historically the least liquid month of the year. We bounced off of support yesterday and slammed right into resistance and we are starting to see the Tech sector roll over as expected. The Bulls do have support at 444.07, 442.93, and then 437.80 resistance is right here at the 20 DMA at 451.86 and 457.67.
The QQQ was up 0.85 to close at 375.19 and we got the Heisman right at that resistance zone at 375.19. The Bulls have Support at 369.68, 367.32 and finally at $363.12. Look for resistance at 375.30, 376.26 and 380.46.
Watch these key levels and pivot points that denote Support and Resistance. If you are interested in trading the
Market and making money please check out the G. Allan Bot. https://themoneymagicians.com
Open Positions:
Short TSLA at $399.10
Short NVDA at $380
Short UPST at 53.35 lower GTC buy stops to 52 and adjust Price Target 1 to $46.75 because we are going to gap down through PT 1 and leave PT 2 open. I will update later today.
Short ZS at $142.85 GTC Buy Stop Limit at $153.75,. If we break through Critical Support of $143.50 on the open then look for a quick trip down to $126.62 We are long the puts as well as common.
Cheers,
G. Allan Collins
