With the much anticipated FED meeting out of the way, we have the answer to the big inflation question. We now know that the FED actually does see the inflation we all see and supposedly rate hikes are coming down the road. We need to watch closely to see if this starts a black cloud over the markets or if we remain in BTD mode. We discuss what to watch for and I do give an idea for a downside hedge in the SPX.
The S&P and the NASDAQ are ready for some intraday trading after a “caution day”; the Dow is a mixed market between the short and longer timeframe. Daytrading the ES and NQ is what is on my Radar for tomorrow.
Did the FOMC break the overall uptrend in the S&P? Nope. I’d like to see some support in the reflation corners of the market like the Dow and Copper, but this meeting and presser should not derail the healthy trends in this market.
Today’s indices flashed the “stay away” signal, and that allowed us to look elsewhere for potential opportunities. Stick with the process, watch the relative outperformers. I explain how in this update.
…Low volume, hesitation, and concern about the taper. But what must come first? I explain exactly what to look for in this video.
While technology has made the move to the upside we were looking for, a few other sectors are showing signs of exhaustion, which could put pressure on the overall market. Here’s my game plan for the next few days, and a few setups that I think could be ready to short, should the markets top out soon.
Tech stocks have been leading the way as of late, and while there is the potential for a bit more upside, now is not the time to get overly aggressive. Let’s take a look at how I’ve approached $GOOGL with different position sizes, along with a few setups that could be short-worthy of the next few weeks.
Square is experiencing a nice move today, and if we get some continuation tomorrow I think it’ll be on its way for a nice price breakout. I’m going to trade this using a bullish butterfly.
