There is more than enough news in the air this week to make a difference. We will take a look at that, but the interesting thing is that the SPX options chain does not at all seem to price in much range. I’m scratching my head, but let’s take a look.
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.
Russia invades Ukraine and the markets rally. Is there juice left in this move? Here’s what am I watching in the markets to understand if there is more risk to come.
With all the volatility this week it may seem that there is a major shift in the trend brewing, but that would mostly be incorrect since most trends—and I will show you which markets I think have good trends—are simply retracing. The monetary policy has not changed, and as long as that is the case, NASDAQ, bonds, crude, gold, and grains are setting up for next week.
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.
