With downtrends intact, rate hikes imminent, and retracements triggering short entries, the NASDAQ and Russell have begun their descent. Now the question is where are the targets and how can this directional bias help daytraders find high probability entries? I explain what tools I use as well as the way in which I will handle targets in this volatile environment.
In this update we take a closer look at sector rotation, the indices at overbought or retracement levels and the higher likelihood for more downside as well as the impact of today’s CPI on the target rate probabilities for March rate hikes. The macro picture is one that is in hawkish mode and this means that trends in bonds and crude oil should continue.
In this video, we look at the big rip higher we have had after the last couple weeks big sell-off. Is this going to continue and what do we need to watch to give us clues?
After a ripping rally over the last couple days, we have to wonder if the critical CPI numbers tomorrow are already priced into the market. In this video, we consider what if the numbers are good or what if they are bad? How might the market react to the news and what to look for afterwards?
With the NASDAQ and Russell still in bearish trends, and the S&P and Dow potentially overbought, it’s the CPI and a possible 1/2 point rate hike that will be the deciding factor. While only a 25% possibility at the moment, where that likelihood is after CPI will be the catalyst for the next move in the indices. I also discuss trigger levels in crude oil, bonds, and gold in this update.
Tomorrow morning we will see what I believe to be the most important CPI report of recent record. In tonight’s video I want to lay out a plan for the market’s response to that report and precisely how I would like to trade it.
Corn and Soybeans will be in play this week and both have strong uptrend we can buy into. Crude oil pulled back and this put it, gasoline, and oil stock in play for a buy the dip. NASDAQ and Russell are two great “double red” downtrends on our TOPS layout and the rips are nearly ready to be shorted. Euro has triggered and followed through I explain the simple pattern that confirmed. Lots to talk about in this update.
Bulls had a strong showing on Tuesday and it’s a move that has at least one more leg higher. We’ll measure that move in tonight’s review, look at the plan against it for tomorrow, and update the latest on a few of my favorite stocks.