Between the volatility of the FOMC Hot Zone Wednesday and the dust settling afterwards, there is plenty to look at that is not an index futures contract. In fact, alongside the hawkish policy narrative is the inflation narrative, and many corners of the commodities markets are moving with clear uptrends. Here’s how use inflation and trade around Powell.
When the market corrects, there is usually a lot of fear and selling that comes along with it. However, at some point sentiment shifts and buyers come back in—like, what happened today. In those moments, I look for stocks rallying off of the lows to find candidates to jump on. Let me show you how.
Today was a very volatile day in the market, with a sell off extending down more than 3% across the board, with a massive short covering rally to end positive on the day. In trading, we can’t be afraid to jump in when things get oversold.
The Voodoo Lines are a proprietary application of Fibonacci analysis with an uncanny way of highlighting spots for important swings like today’s lows in AAPL, MSFT, and many other names.
When looking at the recent action we need to differentiate between bearish momentum, a bearish trend, and a few key levels that will help us know whether to expect an oversold bounce or to short the rip. In this video I walk you through how to do that with my foundations (and free) tools. The key is the trend and not to frontrun what we “think” may happen but to trade what we see.
Today we witnessed some intense volatility just ahead of this week’s FOMC and long list of key earnings announcements. In tonight’s video I walk through not only a plan for that, but also some other non-related trades that I’d like to be involved in.
The party is over. Don’t cry for a dead bull, just follow the charts and embrace the volatility (opportunity).
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.
If the U.S. equities are turning back down, this is what it could look like.