The first emotion everyone — myself included — must have had last night upon the news of the Dow dropping 500 points in the overnight session had to have been fear. However, that is why we learn — and why we teach — how to read market internals and price action. I view the market as resilient and the internals confirmed this thinking today. Let’s review the large caps, key industry groups, and high short interest stocks that are setting up this week.
Sunday night we were gauging the sell-off with the yuan and yen. Seeing those currencies level off was the first clue. Clearing Range breaks to the upside sealed the deal: It was a day to get long.
The pullback in the /NQ and /ES were close to our swing long play and energies are setting up buys as well. The Euro is still on a downward trajectory and those are the markets in focus in this update.
Let’s take a look at the Ethereum/Bitcoin ratio, and what it means for the market, and how to use it to trade.
There’s 3 names I want to review in tonight’s free video. One of them we reviewed months ago and I think it’s time for the next leg higher. The other 2 have been dominant in the cloud space, and are probably worth making room for.
There’s so much to cover in tonight’s video newsletter. It starts with some thoughts on earnings and unbalanced flies, then moves into where we last covered $NDX and my plan into May and beyond. Let’s dive in.
Simple concept. Extremely vital to your trading success and yet very difficult to do. Here’s how to cut losers, not revenge trade, and focus on your edge.
