| | | | US Dollar Squeeze?
First, don’t miss today’s Daily Chart Setup trade idea down lower in this newsletter.
DXY the US dollar index has moved up about 2.5% off the lows in just 9 days. If the move goes much higher it can kick off an ugly squeeze since the short dollar trade was one of the most crowded amongst smart money.
Come join me as we dive in and see what’s moving!
Plus, as always, we have stocks popping and dropping so come find out what is moving this morning as I look for stocks and do some live premarket analysis on SPX, SPY, NDX, QQQ, Russell, IWM and other stocks that are potential plays for the day.
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Nike and Tesla Face Defining Moments Amid Market’s Pullback
Nike (NKE) and Tesla (TSLA) sit at critical crossroads as traders brace for earnings, market volatility and shifting demand forces.
Both stocks carry the potential for sharp moves in opposite directions depending on how their setups play out in the weeks ahead — with Nike reporting after the close Tuesday, and Tesla on Oct. 22.
Nike’s Make-or-Break Level
Nike is testing a key support zone on the weekly chart. If it cracks lower, the downside could stretch toward the $50 range, erasing years of shareholder gains.
But if support holds, the upside is equally dramatic — analysts point to a possible 5x move from here, making it one of the most explosive technical opportunities in consumer discretionary.
The broader pullback only amplifies the tension.
A breakdown would line up with wider market weakness, while a bounce would highlight Nike as a leader in any recovery phase. For traders, it’s a binary setup with clear technical levels and outsized risk-reward potential.
Tesla’s Bull-Bear Divide
While Nike tests support, Tesla heads into earnings surrounded by heavy speculation. Options data shows millions of dollars flowing into calls across strikes as high as $550, with expirations reaching into 2027.
That activity underscores how aggressively some traders are betting on upside.
The bullish case leans on technical strength and the possibility of tax-credit-driven sales being pulled forward. Buyers need only sign contracts before the deadline, which could inflate reported demand.
But bears point to Elon Musk’s warning of soft sales for six to nine months once credits disappear, along with questions about whether the robotaxi vision will materialize quickly enough to fill the gap.
With both a shareholder meeting and earnings call on deck, Tesla’s setup reflects a classic event-driven catalyst — high expectations on one side, fundamental concerns on the other, and the potential for a sharp swing either way once the numbers hit.
Defining Market Tests
Together, Nike and Tesla illustrate the split personality of today’s market: one stock staring down a pivotal support level, the other drawing heavy speculative bets ahead of earnings. Both highlight how quickly sentiment can shift — and why managing risk matters as much as chasing reward.
Now be sure to join me live at 9:15 a.m. ET for “Morning Monster,” my market-open livestream on YouTube!
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