In this video we look at the crazy move we had off the FOMC minutes today. We are looking like we want to bounce higher, and we do appear to be finding a bottom. Is this a head fake and can we trust any bounce? We talk about both scenarios, and neither is great.
Take a peak at Joe’s ultimate levels of resistance in our bear market. See how he’s playing the chop in the short term while setting up big potential bigger gains in the long term.
Tonight I want to prepare for the possibility of a relief rally/melt up that we will want to be looking to sell into should we get such an opportunity. As usual, I do try to prepare for either direction with targets on both sides.
Wednesday’s rally saw a sharp snap back for several names, but at least in this moment, these trends are still intact. Let’s look at how we define that technically and how to take advantage of it.
It’s important to understand these particular tea leaves.
With June and July set for a 1/2 point hike at each meeting, the US dollar weakness and bond/notes strength may be perplexing… but with the ECB joining the hawkish central bank party, the euro and eurodollar strength is pushing back on US dollar and treasury trends. All this could come to a head with the FOMC Meeting Minutes Wednesday; that would be a catalyst for the trends to get back on track. In the meantime, make no mistake about the indices are still in downtrends so no bottom picking!
It’s not the daily that I’m talking about! How do we keep the bottom picking and hope-ium at bay and trade what we SEE. It’s not easy but it can be done as long as we start with structure first. The daily downtrend is still intact and strong, but there have been bounces setting up and I show you how and when to find them in this update.