04/02/2024

Hey Trader,

We're entering the Spring Quarter with a little more volatility. March is usually a whirlpool for stocks with jets on full speed. However, we didn't get that! Will we leave it up for April? So far it looks like my "leap year" prediction from last week's letter shifted the market jitters one month over.

Today's JOLTS report spooked traders, sending the market lower before the opening bell. We’ve had gaps down before in this raging bull market, but this one is hitting slightly different for me. SPY has been holding a steady uptrend. While we're still obeying the 21 day moving average, SPY lost footing in this perfect uptrend. We can call this an "oops" moment should it make its way back into the channel, that does happen, however if we further break the 21 day we'll be hitting a significant volume node in our profile.

As you know — unless you've been under a rock — volume nodes are more important to me than ANY indicator. It is forward looking to where the price will recoup or fall out of bed. In SPY, that node is 513. If we can't hold this level, there is a serious lack of supply below and traders could jump ship.

We caught the market showing some inefficiencies in last week's letter when we spotted Gold & the Dollar moving up together (Whatttt?) and also a lot of bearish closes. That signals the market isn't on auto pilot, and traders are starting to pay attention to some sort of under current. If we do start to break those levels and unwind all of the hard bull work we put in, I'll roll up my sleeves and dive deep into some easy shorts thanks to the volume profile!

I also wouldn't dare short NVDA, but there are some volume nodes to consider there too. And I commend any trader with the chutzpah to mess with THAT thing, but I'll root for you!

NVDA is a little different than SPY in that it's barely holding on to the 21 day moving average, but holding channel support AND volume support. The key level for NVDA here is 870.50. This is the final area bulls like. If we break that, the lack of volume supply to the downside could send traders into a flee frenzy and price can reverse FAST.

Again, I'm not touching NVDA but it is easy to highlight a possible situation. That's the beauty of the volume profile. It is always forward looking and has our backs!

Big Money Flow Spotlight: LYFT

By Mark Sebastian

• Big Money Flow happens when someone buys or sells thousands or tens of thousands of options at once.

• Insiders behind these plays have knowledge no one else has and these moves signal wild stock shifts to come. 

• I specialize in spotting, understanding, and profiting from these moves.

Ahead of earnings in May, traders are positioning for LYFT to make a nice run higher — buying the May 25 calls and selling the May 30 calls.  

The bullish action here doesn't exactly align with the chart, but if the market gets another leg higher, it's easy to see LYFT participating.

Check us out on YouTube if you haven’t already!

I broke down some concerns in AAPL and NVDA today.

And catch us for some live trading today on Trade to Close… right here!

Always be closing,

Olivia Voz and Mark Sebastian