1/29/2024 Market Monday

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 Hi readers! I am excited to bring you today's post, Market Monday! Today I will be analyzing the charts for AMD and QQQ, and I will be making some predictions on what I think will happen in the next week. Here is the update:





Above is the chart for AMD. I have marked a key demand zone, which was a key supply zone before the stock broke through it and retraced back. As we can see, before the 24th, AMD  was consolidated, and it broke through. So, I was right in the previous market analysis post, as I thought it would either break through or consolidate. We can see here that in the past week, AMD has broken through its previous supply zone at 174, and has created a new supply zone as its latest high point. After that, we can see that AMD hit its previous supply zone at 174 a couple of times and bounced back up, making that at new demand zone. The new supply zone (new highest point) is at around 184, as indicated by the line on the picture. After this analysis, I believe that AMD will go up to its supply zone at 184 by the end of this week. We can see here that is has already touched its demand zone at 174 and is climbing back up, and it looks like the retracement after the huge breakthrough has been completed. This will hugely benefit my options positions, as the long calls and short puts I have on AMD will increase in profits.




Above is the chart for QQQ. We can see that after its initial huge breakthrough, it retraced just a tiny bit, then curved back up to create a new high point. Since the last Market Monday post, QQQ has gone up a lot, and has retraced, indicating some consolidation. QQQ, after creating a new high point and a new supply zone at around 420 to 429, went all the way back down, NEAR its previous low point. It did not go exactly to its previous low, it bounced back up at a price point a little higher. This has created a possible trend line, as shown by the blue line in the picture. QQQ is currently back at its key supply zone near 428. This means either QQQ could respect the zone and bounce back down, or it could break out of this consolidation and create a new high point. If QQQ were to go down, it could either respect the trend line or go back to 1 of the 2 previous low points. I am quite unclear whether it could break through or continue its consolidation, only time will tell. But, after looking at this analysis, I am going to make an adjustment on my QQQ options position. I have on long 425 puts as a hedge to the downside. I am going to exit those and buy the 428 or 429 puts. I think this will help, just in case QQQ decides to go back down and consolidate a bit more. This adjustment will enable me to make some profit on a potential downside move.

Here is a picture of my options portfolio today (after trading hours have ended): 


That is it for today's market analysis post, I hope this gave you some insight on what might happen to AMD and QQQ during the rest of this week. Thank you for reading, and I will see you in the next post!

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