There’s an infinite number of reasons as to why a stock might be moving, but one I want to be aware of over the next 2 weeks is that of max pain. Let’s look at two examples and why they may help describe the current environment.
With rate expectations returning to where they were when Powell spoke on Wednesday, markets could go back down to the pre-Powell levels. That would put the /ES at 3964.
Let’s do what we do every Friday, and review the core markets and the periphery to see how things are aligned into next week.
Firelines are the most significant levels within the Voodoo Lines indicator. So when a major index nears one of these firelines, we take notice. We have two indices currently in close proximity to these important levels.
Many smaller cap stocks are forming 4 hour bull flags. If the overall markets don’t crack next week, I will continue to buy the ones that break up, like PLBY did today.
In this video I outline an argument for continuing the trend of the market moving sideways to higher. Specifically, we look to energy to lead the way as the Squeeze Pro has a lot of compression for things like XLE and even more so OXY and XOM.
