Tesla $242 Is the Level to Watch
SPX futures are up 10 points after we kissed 4322 last Friday and pulled back a bit. I will see how we consolidate ahead of the CPI on Tuesday and FOMC on Wednesday.
The active sequence from March was led by tech and started to broaden out a bit. Headlines this weekend talked about a “New Bull Market” but these definitions like “20% off the lows” have become more meaningless over the years.
As long as we hold 4290ish, it's hard to get too bearish. SPY hit a high of $431.99 on Friday and also touched $429.62. I will see how tight things get ahead of Wednesday. I did well buying SPY calls into weakness for the past few weeks.
Tech continues to do a lot of the heavy lifting. The downtrend line was cleared in March and every time they try and rotate the flows, it repairs like we saw last Wednesday into Thursday. QQQ's have active support at $353ish. As long as that holds, it's hard to get too bearish here. I did well selling calls above the market last week.
Now let's dig into some individual names:
AAPL provides ways to trade around a position. Investors and traders are being rewarded. The $180 area needs to hold to set up a potential move back to the $184.95 highs.
TSLA: we were rewarded for getting very bullish on TSLA when it cleared $169.76 on May 17. There have been so many ways to make money since then with options and stock. It hit a high of $252.42 on Friday. It feels a little extended. I would trim if I was heavy in it. It seems like some digestion can happen. Holding the $242 gap pivot keeps it super special. Below and it can get choppier.
META helped lead this tech rally with a high of $276ish and it's now in rebuilding mode. $258ish is the recent low. See if early strength holds or fades today. $267.59 is Friday's high.
NVDA is trying to rebuild since the $419 high. Recently, it held $373ish and bounced. It seems like when it's green, it goes red. And when it’s red, it goes green. So there is not much to do this morning.
AMD gave us a super move from $91ish to $130+. It's been in a corrective/digestive mode this past week. It held the $115.80 area again. I would keep taking trades, but I would trim some this morning. See how it holds up ahead of its AI chip unveiling event.
Scott Redler Positions Disclosure as of 2023-06-12 at 9.12.01 AM
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