Wednesday’s trade was volatile with the ES and the NQ both moving lower with a bit of strength. TSLA initially continued to sell off into the Globex session until the rallying cry was sounded that TSLA was “extremely oversold” and that brought out the squeezes under very heavy volume. TSLA traded over 220 million shares on Wednesday and that in my book is a good old fashion short squeeze combined with a sizeable helping of position adjustments! I suspect we will see several additional rounds of this type of larger year end positioning. The usual suspects would include AAPL, AMZN, AMD, GOOGL, META, MSFT, NFLX, NVDA, and TSLA – and that is a small list within the NQ.
For tomorrow – premarket the latest Jobless Claims data will be released at 8:30 AM EST. I review both the upside and downside scenarios for the ES and the NQ — both have different motivation to make them happen, but neither upside or downside can be ruled out and I can’t rule out an stronger increase in volatility (speed) of the moves. I also discuss and update the Fibonacci extensions for both the NQ and the ES.