Welcome to the latest edition of Dog Bytes!
We have mixed markets around the world as everyone tries to figure out what's next.
The Fed did a hawkish raise as expected. But the market wanted 100 bp of cuts in 2025, and the Fed offered up 50.
Sometimes, reality bites!
The SPX was up 28%-ish YTD before yesterday. The A/D lines were deteriorating, and there were some clues that markets were vulnerable.
The upper range at 6035 broke, so the trade changed.
Many active traders triggered stops to reduce longs (what I did) and some got short.
Yesterday's low is 5867.
TSLA continues to be one of the best vehicles to trade. We exited from the Power Plays newsletter ($99 for a whole year) on Tuesday which was a nice win. And in my account, I started to short $510 and $530 calls plus I bought TSLQ (a leveraged 2X inverse ETF on TSLA) as it was extended. So that worked out well. Now we'll see if TSLA gets rejected into the $457 area. Watch that level carefully. I'm watching for an opportunity to do a cute short.
Bitcoin went from $62k on 10/11 to a high of $108k Monday. I use a tier system to book money and stay with the trade. It held $98k to keep the upper trend intact. I'm trying to stay with IBIT and buy dips. The miners are tricky and challenging, and we had to exit WULF from Power Plays for a loss yesterday. My last touch of MSTR was selling Monday's open, and it's been down three days straight there. Be careful with those names.
NVDA put a low in at $126.86 and held the 100-day Tuesday. Yesterday I mentioned that $135-$137 was not the place to buy. Today we'll see if early strength holds or fades. I have no position but will watch it closely for clues.
IWM peaked well before other sectors. It hit $244 and grinded lower, showing relative weakness for weeks. Yesterday it broke the $230 area with a low of $218.94. We'll see if that low holds now.
PLTR held up better than most. $70-ish is key support.
RDDT still looks decent but can be tricky. $156 needs to hold now.
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