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12/13/23

Pre-Market Analysis

Global News | Social, economic, & market

Global market performance

Economic calendar | Link

The focus here will be on Producer Price Index (PPI). Yesterday was coverage on the Consumer Price Index. The schedule is as follows (MST):

Time
Reports & Conferences
Period
Actual
Median Forecast
Previous
6:30 am
Producer price index
Nov.
0.1%
-0.5%
6:30 am
Core PPI
Nov.
0.2%
0.1%
6:30 am
PPI year over year
--
1.3%
6:30 am
Core PPI year over year
--
2.9%
12:00 pm
FOMC interest-rate decision
12:30 pm
Fed Chairman Jerome Powell press conference
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Hypothesis → Result →

Sector analysis

Information technology continues to be the strongest performing sector over several periods.

Active Market Analysis

Trade Hypotheses

12/13 | TSLA bearish past $234.30

Reason

There are two reasons TSLA’s stock is down as of pre-market hours on 12/13:

  • TSLA will be recalling more than 2 million cars over autopilot safety concerns
  • TSLA announced their Model 3 RWD and Long Range vehicles will no longer qualify for a $7,500 federal tax credit starting 12/31

I placed my entry below yesterday’s low in order to confirm that there will be no opportunistic buyers who may push the price back up prematurely

12/13 | NVDA bullish past $476.69

Reason

image

NVDA has tested this support zone from November 22 - November 30, when it broke through and it became a resistance zone. The resistance zone was tested multiple times from December 7 - December 12 and is showing signs of breaking past this to become a support zone again. This will depend on the PPI report and if it does, I will enter a long position.

Result

  1. Market trend → Is it up or down? Have you given it enough time to formulate a direction?
  2. Sector trend → How has the market been trending in the past
  3. TIC.N → Is the stock market pumping or dumping?
  4. Technical patterns →
    1. Is there a chart pattern that is dictating this trade?
      1. Ex. Head & shoulders, Double tops/bottoms, etc
    2. Are you entering based on a support or resistance level?
    3. Is your hypothesis supported based on any moving averages?
      1. Ex. 8EMA, 10EMA, 20SMA, 50SMA, 200SMA
    4. Is the RSI within 30-70 range?
    5. Is the price above or below the VWAP?
    6. Is there any large volume spikes that support your hypothesis?
  5. Does the weight of bids vs asks in the Level II data support your hypothesis?