Stock Market Plan March 19

Patience until FOMC.

Welcome to the market recap for Monday March 18. The plan for members is below in the paid section so let’s get started.

Gap up to failure on many tech names which was one of the scenarios discussed last night and exactly what I wanted as we head into FOMC this week.

I realize that most of you might still be stuck in the retail trading narrative and therefore feel the need to create 50 stock watch lists each day and track unusual options activity to make it feel like you’re doing something.

However, when you run a top-down long/short equity approach most of the idea generation is done in advance, so you just end up pressing the button on a trigger/catalyst. Today was simply an example of that and the trades on both NVDA 0.00%↑ and SMCI 0.00%↑ were in play with NFLX 0.00%↑ end of day (overnight risk).

Google - Nice day to take profits on this swing we discussed 2-weeks ago and that fits right into our active-trading window. Still long some longer-term calls but I exited most of them in the morning session. Don’t care about the news, profits are booked and on to the next idea - your local FinTwit guru and financial advisor can argue about the news and what it means; we’ll be ringing the register!

Crude Oil - I love energy and it holds a special place in my heart as it was one of the first markets I traded (WTI Crude and WTI Houston) as a young-buck back in the day and we finally got our breakout of the range. The idea was to get long WTI Crude calls but was focused on SMCI/NVDA this am and those moves took precedent. None the less, we are on target for higher as discussed in the report.

A lot of things are a-brewing this week and we have a lot of news still ahead which means maximum focus so we can extract a few dirhams to end a quality Q1.

Premium Video Tonight:

• S&P500/Nasdaq/Crude Quick Analysis

• A few thoughts (additional on AAP)

• Neflix Levels Update

• The importance of trade selection (SMCI example)