It all depends on the market structure, so we always start there. It’s as simple as differentiating a non-trending from trending market. Then it becomes easier to pick the indicators and setups you will use. If a market is range-bound the approach must be different than a trending market. Let’s take a look at the indices and determine, “which way are we going next?”
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.
Higher interest rates are pressuring megacap tech and that’s keeping markets subdued. Let’s review the why and the adjustment to make going into 2022.
We’re seeing some potential support areas in NVDA as well as resistance area which needs to be cleared to confirm an uptrend. While you might be familiar with the Voodoo Lines indicator which can add information about support and resistance, in this video lets explore Micro-Voodoo levels which are providing extremely effective levels right now.
In today’s premium video I outline the caution I believe is needed to trade next week successfully. Monday could be crazy, and if for any reason we gap up, I might want to stay short. Here’s why…
Now that Non Farm Payroll, FOMC Meeting Minutes, and PMI numbers are behind us, what lays ahead? We will trade what we see not what we think. We will rely on market structure and support and resistance. The first dip of January is (historically) bought and generally rallies to mid-February. So we will focus on relative outperformers for this stretch on the calendar.
Rate hikes, jobs, earnings are going to make for a volatile but potentially bullish run in equities and indices into (seasonally) mid-February. But we need to get past Friday’s Non-Farm Payroll to find some smoother seas. Overall the market “knows” via Fed Fund futures that the timeline to rate hikes is now easily May and maybe even March and yet the indices are not melting down (that may change the second half of February). Let’s look at the ranges we are dealing with and the near-term opportunities ahead of us.
The indexes, particularly the Nasdaq, has broken key levels after yesterday’s flush, but there is still a chance they could hold up, and trade higher from here. Check out the video to learn what key signals and levels I’m watching, along with some potential trade setups in WM, TSCO, QCOM, MRVL and more.
