The markets

There was a big move down in the markets last night and that is something I warned about! Continue to keep an eye on the Nasdaq and technology. These are two areas you must focus on to the downside. The Nasdaq moved down significantly – 1.74%. You could have made a lot of money from that large move down! One of my students, James, last night made US$5,863.96. That is incredible and he did it after listening to the subscriber Daily Update vodcast and reading this update. I advised all of you to watch the Nasdaq and technology. James’ success demonstrates the power of what I teach in the elite program and also through The Daily Updates. James, top of the class for you! Congratulations on a job well done. That is an incredible income for one night. I want all my students to be able to do this, and I know that many of you are. For me, as your teacher, it is inspiring!

The UVXY was up 10.26%. There were also opportunities on that index, as my day-traders know.

The sectors

Financials was the only shining light last night, up 0.69%. Technology was down 1.78%, along with the biotech sector, which was down 1.43%. Those are two big moves down! We have a bearish position in biotechs and are happy with that.

Last night’s trades to the downside

The FAANG stocks were the ones to watch. For example once Facebook broke its 30-minute low it moved down sharply and there was indeed money to be made. Google also broke its 30-minute low. Amazon had a similar chart pattern. It formed a ledge then broke below the 30-minute opening-range low. Netflix also broke the 30-minute range-low. You could have made good money on all these!

Outside the FAANG stocks there was Tesla, in the consumer cyclical sector. It was a nice looking day-trade. It had a clear bear-flag and broke below the 30-minute opening range low then really moved down. Again, you could have made some great money on that.

Going forward …

Technology and the Nasdaq, will they bounce back after being over-sold or break down further? Technology on a daily chart has just broken below a significant support level and the MACD is still pointing down.

XBI is a way of tracking biotechs. They have certainly sold off down to their 9-EMA. I warned you to be weary of that. It is now very over-sold, but could still have downside potential. James made all his money last night on the FAANG stocks – Facebook, Amazon, Apple, Netflix and Google – again, well done.

On a five-minute chart, the Nasdaq has a similar pattern to technology. It tried to hold its 30-minute low but once the Nasdaq broke below it, it had a very decent move downside. Could we see the Nasdaq rally before another big move down? Potentially. That is why you use the first 30-minutes of the market opening to observe. If the Nasdaq and technology break the 30-minute low then I expect them to move down and that is what I’ll be focussing on tonight.