Market analysis for Jan. 23rd, 2024

Well, I'm calling yesterday a huge victory. My net liq ended down $550 bucks at the closing bell but I started off the day $9,000 in the hole. We worked trades all day long, right up to the bell to get most of that back. We did have some success with our 0DTE's and SPY trades.

The market has broken through some key resistance levels. It's not clear sailing for the bulls yet but if the "trend is your friend" then your current freind is of the bullish persuasion. 

Most of the indices we trade are at new ATH's with the IWM (RUT) lagging a bit.

​Technicals are still firmly bullish:

Now is a prime time to diversify your model portfolio into non-equity correlated underlyings. We are currently working  Nat gas, Oil, Bonds and  Wheat trades. These give us nice balance and usually have great income potential. We will be looking to add a Copper position today.

Open interest walls continue to grow and squeeze with more and more put selling taking place. 

While bullish signals and directional bias continues on, there are some signs of being overstretched to the upside. We are pressing on the upper Bollinger band while Stoch and RSI are approaching over bought range. A pause of pullback here wouldn't neccessarily be bearish. We may be due for a pause. 

Market internals look fairly strong. 

Earnings season continues to ramp up. Our UAL and ZION trades from yesterday look to be full profits this morning and we'll continue to work these setups with NFLX, ISRG and TXN today.

Crypto continues to be a "buy the rumor, sell the news" setup. After the Bitcoin spot ETF's were approved its been nothing but down with BITO losing $200 mil of withdrawals since approval.

Yesterday was very much a consolidation day and today looks like it could be more of the same. My intra-day #0DTE levels: There are two standout levels for me today. 4898 to the upside and 4873 to the downside. Those correlate with yesterdays high and low respectively. Anything between these two levels is just meaningless chop to me. Levels of resistance to the upside are 4888/4892/4898/4903. To the downside: 4879/4873/4867/4859. Tight levels today. We may look to incorporate a butterfly into our 0DTE's today.