Updates for Wednesday November 13, 2024

Click here for Signal Trades spreadsheet.

Updates 1:25 AM ET - Wednesday

​NQ:  bull flag
Market is still celebrating Trump’s victory but the bull momentum is clearly waning, as shown in NQ daily chart below.  NQ has formed a bull flag, suggesting more upside to come, but first the bull flag may get bigger and lower.

Today brings CPI.  Tomorrow brings PPI and JPI (Jerome Powell Interview).  Friday brings OpEx.  Next Wednesday brings VIXEx and NVDA earnings.  This series of events is likely to move the market out of its current placid top formation.  In other words, the bull flag formation may get lower.

How low?  We still think NQ dipping to the zone 20700 - 10800 is a good opportunity to buy the dip.  NQ may rise as high as 22000 by year end.

Volatility:  look for a quick spike
VIX futures (VX) 4-hour chart below shows that it is basing near the support zone 15.25.   With all these events happening, we wouldn’t be surprised if VX spikes up to 17.  That would confirm the opportunity to buy the dip in NQ NVDA NVDL SOXL TNA.

​SOXL
As a beaten down sector, SOXL dropped first and dropped more.  It is likely to need to retest recent low of 29.25 to bring in enough buyers to rise up.  After that, SOXL may gather enough momentum to reach 44 by year end.  The triangle pattern supports this possibility.

​NVDA  NVDL
NVDA is forming a top similar to the one it formed just before the last earnings on Aug 28 as shown in its 4-hour chart below.  Wait for NVDA to dip back to support in the zone 137 - 140, accompanied by the quick spike in VX.  That’s the low-risk setup to buy NVDA for the remainder of this big bull swing.  NVDA may reach 156 by year end.

For NVDL, the support zone is now 73.25 - 75.35.  This is a buyable dip.  NVDL may reach 92 by year end.

​TNA
Yesterday we wrote this about TNA:  “under the hood momentum is waning…Now is not the time to chase TNA up”.  And that has played out today.  TNA lured the bulls in and then formed a top, as shown in its daily chart below.

Best to wait for TNA to dip back to support in the zone 46.5 - 47.8, accompanied by the quick spike in VX.  That’s the low-risk setup to buy TNA for the remainder of this big bull swing.  TNA may reach 67.8 by year end.

Our personal trade plan
Our plan to enter NVDL when conditions approach these parameters:

• NQ pulls back to support in the zone 20700 - 20800
• VX spikes up to 16.5 - 17
• NVDL to dip back to support in the zone 73.25 - 75.35

Click here for Signal Trades spreadsheet.

Disclaimer
The information presented here is our own personal opinion. Consider it as food for thought.  We are not offering financial advice. We are not promoting any financial products. We are not registered financial advisers or licensed brokers. We make no guarantee that anything will unfold according to our projections.  You are proceeding at your own risk if you follow our trades.​​​