During the Charts and Coffee pre-market show, a viewer asked about seasonal expectations for the new year. Like any seasonal take, the current environment must be considered first. As we start the year in chop, what’s the chance of a breakdown or breakout? This depends on the index and sector you are watching so let’s take a look at what the market is giving us in front of Wednesday’s FOMC Meeting Minutes and Friday’s Non-Farm Payroll.
During the Charts and Coffee pre-market show, a viewer asked about seasonal expectations for the new year. Like any seasonal take, the current environment must be considered first. As we start the year in chop, what’s the chance of a breakdown or breakout? This depends on the index and sector you are watching so let’s take a look at what the market is giving us in front of Wednesday’s FOMC Meeting Minutes and Friday’s Non-Farm Payroll.
The catalyst could be tomorrow with the FOMC Meeting Minutes. Using that as the reason for a bounce from an oversold level in the ZN 10-year futures, I walk through the specific setup and pattern that needs to trigger to validate the buy and where the upside target would be.
2022 started off on a positive note, with multiple squeezes printing that could trigger the overall market higher. One area we’re focusing on is the semiconductors as they are gearing up for a push. We’ll also cover a game plan for TSLA’s price action… Do we gap up tomorrow? Will a squeeze form?
As we usher in the new year, let me show you a few trades that I have in the book and in the hopper as planned.
We’re coming into 2022 with a slightly bullish structure in the S&P 500 (ES) and QQQ (NQ), which should trigger strength across the board. One spot we’re focusing on is the semiconductors (SMH) as it has continued to hold structure over the last few weeks of volatility.
In this update I walk through the seasonal tendency for January as well as the sites and habits that will help you find trades this year. All of these are things I check each and every morning allowing me to see the volatility hot zones coming each week and the trends that they are occurring in which in turn helps my select the best indicators and setups for my trades.
