13th May 2021 Long TESLA short ES Futures Part 02

Just want to do a quick update on the trades on TESLA and ES

As a follow up to my previous post...

ES continued its slide down, hitting support at Daily F3 (4040.50) and I was able to lock in my profits there.

We have since bounced off that support node and ended today's session right against important resistance

I didnt like the way we close - so I initiated a new short position around here, with stops above today's high.

While I did book in some profits on the bounce on TSLA when it covered the gap,

I'm willing to take some heat on my remaining long position as originally planned.

We broke below its 200ma, and found support intraday against Daily COP ( 557.75), before trading back towards its ma.

Its the first bearish close below its 200MA but we still remain above previous structure lows at 539.49... So I am still expecting an ongoing battle to play out between TESLA bulls and bears at these levels.

If I get stopped out of the trade, I get stopped out.

Fundamentally, this is  sell-off in Tech due to inflation fears, coupled with Higher timeframe profit taking off Q XOP.

How the markets play out very much hinges on Inflation expectations.

While there is definitely a risk for hyper inflation or increased inflation expectations that could lead to the FED changing the position on interest rates, at this moment in time based on available information, I still feel that it is unlikely.

I think the FED views the recent inflation numbers to be still within their expectations.

Here is a really interesting article regarding the recent inflation numbers.

So technically, at the moment, I am still bearish ES futures ( already booked in good profits ),

And trying to stay long on some US growth stocks against important technical support levels. ( The fed is unlikely to change their position on monetary policy anytime soon, and the risk of hyper inflation will still require time to play out )

That said, will continue to rely on our Technical tools to make our trading decisions.

P.S. Will try to make a more detailed video about inflation expectations, and how we can use the charts to help guide us, over the weekend, Stay tuned.