With price action closing the distance to the zone we want to engage, in this update, I outline which markets are on the radar for setups as we start next week. This week’s volatility has proven to be a fantastic opportunity for traders who have been waiting for a chance to get in on the trends in tech, bonds, crude, corn, beans, gold, and more.
After a volatile week we’re starting to see some leaders emerge once again. I think Tesla is going to be on the forefront of that leadership and if this end of day signal follows through, we could see higher prices on Monday and possibly into Tuesday.
In tonight’s free video we’re picking up where we left off in SPY and its relationship to the put/call ratio. Now that the pattern has played out, it might be time to consider some neutral to bullish exposure.
Thursday’s flush and subsequent rally may have been exactly what bulls needed to get out of the muck they’ve been stuck in. There will be plenty of resistance on the way back up, but if we get a few days of strength, these are the trades I’ll be putting on.
Downtrends are far more volatile than uptrends. We saw that today as the early extreme weakness quickly triggered a rally. But does that rally change the downtrend in any meaningful way? Not likely. The macroeconomic trends as well as the price trends indicate the path of least resistance is to the downside.
This is our weekly look at the macroeconomic trends that are shaping our watchlists, setups, and trades. The first rate hike is coming in March and the indices are heading lower, dragging the tech sectors with them. Inflation trends are still intact. It’s important to focus on BOTH the uptrends and downtrends in this environment.
In this video, we look at the selling pressure that is increasing as we go lower and lower. We want to short this market, but have been getting wild intraday short covering rallies, so we must be careful. How do we play this market and not get crushed?
The future’s market posed quite the challenge today even for the most nimble of day traders. We started with false cash open breakouts, and then got hit with geopolitical headlines out of Asia threatening equity stability here in the States, and commodity unrest worldwide. The key today was picking your spots and limiting your exposure. Check it out.