The Fed and OPEX Effect in play
Fed skip yesterday on raising Fed Funds Rates which Fed Futures expected. This mornings Dow, SP500 and NASDAQ Futures are down this morning. Buy on the Rumor, Sell on the News? Possibly.
The Crumbling of the House of Tesla?
Tesla closed at $256.79 yesterday and in pre-market its at $248.45 as I am writing this. #TSLA has support at $237.57. Looking at a weekly chart, $209 and $169 are very likely in my opinion. The Commercial Hedgers most likely will be taking off their long positions as Large and Small Speculators begin to unwind there shorts positions. I know it sounds counterintuitive, but that’s the mechanics of markets.
Tesla Weekly Chart
Will the headlines say ‘Buy More AI’?
Probably. Yet as we head into the end of possibly a very bad earning quarter, the Fed has rate hikes for July on the table. Not so good for markets.
Friday is monthly and quarterly options expiration. One of the biggest. Taking in account how the mechanics of the market work, the floor that has push AI higher could disintegrate leading Monday and the rest of next week into a possible free fall. Got profits? May want to consider taking some off the table. (This is not advise or a recommendation)
Support at $4053 and $3652.
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