Sometimes the most bullish thing you can be is a short-term bear… and that’s the case this week as the market prepares for two days of Powell. Pullbacks are the opportunity and that is triggered by selling. Let’s root for the bears/sellers to give us a pullback within the Double Green markets.
We don’t have to get in the weeds with data releases; this is broader strokes. Will traders and investors view a strong CPI as good for equities? Likely not. However, the reaction and the volatility should be considered within the context of the overall daily trend, which is still up.
There are corners of this market that are trading in a uptrend. Get that right and the trades are clearer. Get that wrong and you’re fighting the trend. In this update we’ll discuss those indices, sectors, and stocks and how to build your watchlist as well as crude oil, bonds, gold, the US dollar, and yen.
The NASDAQ gave us a nice gap up fade setup today, and sticking with the Directional Bias, we got long… on the bell? No way! I explain how to track and trade gap opens. We also have a very busy week with Fed members speaking and Powell testifying before the Senate on Wednesday and Thursday — lots to keep an eye on this week as we head into options expiration Friday.
A busy economic calendar does not mean we can’t daytrade, just that we have to be aware of what the market is preparing for. CPI before the bell will set the tone on the open and Powell then takes over Wednesday and Thursday.
There are several pullback setup zones in NIO. I go over a 5 minute trigger in this video also.
Good week by stocks, things remain wildly bullish and wildly extended… there’s a signal that next week the market may want to rotate back to inflation stocks. Let’s review the signal.
