@rsotc – thanks for all the updates this AM. I’m sure you’re planning to, but please provide re-entry/add-on levels for SOX and NDX. Thank you

XLF, false break out?

Looks like we will find out pretty soon on the financial sector. Berkshire (the largest participant in XLF) now has over 54% AAPL weighting in their entire portfolio… hows that for diversification Warren?
Apple -7%. XLF rejected off 200dma. Amazing how all these fundamentals line up.

Technically, IWM wasn’t added as an official trade as I didn’t specific/add adjusted price targets (T1=XX.XX, T2=…, etc.), a suggested stop, or a suggested position size adjustment. However, the same unadjusted targets from that post following the breakdown on Aug 12th (here: https://rightsideofthechart.com/iwm-rty-trade-ideas-price-targets/ ) are still in play. Here’s an updated 60m chart with my preferred min. swing target (the mininim/1st target is the 152.12 support but I favor a move down to at least the 145.63ish support) as well as a lower, potential target zone.

The Fed has pledged to do their best to support the market but I’d be willing to bet my bottom dollar that Powell is not happy with the way that the market took to those comments to mean that stocks can only go up & never down again. I believe that the Fed is not happy with the bubble they created in tech stocks & will likely sit back while some hot air comes out of the market.
The Fed has a dual mandate: Price stability and maximum sustainable employment. Creating a bubble with stock valuations making one the biggest disconnect from the underlying fundamentals in decades certainly does not bode well for price stability in the long run, even if that seems to have been the case for months now. My guess is that the Fed secretly wants to walk the tech sector down with minimal collateral damage to the all-important financial sector at the same time. JMHO, of course.

Randy, as we have seen over the past 4 months days like to day causes the Fed to step in or congress will finally be motivated to pass a stimulus package. I’m keeping my stops tight.

Maybe also worth noting the Dow was the last of the major US indices to close it’s Feb gap y’day.. perhaps now the damage is repaired?
Also, a textbook hanging man candle on the daily in QQQ, potentially marking a top, however anything is possible if the Fed inject more stimulus everywhere.
I like the SKEW thesis, hedges will be unwound and retail will hopefully end up bag holders for shamelessly buying short dated calls on mad valuations.