Raising the Roof: Debt Ceiling Resolution Sends Markets Soaring!


Simpler Trading Team

Jun 01st 2023  .  4 min read

The Market Open

The day’s opening bell rang to an optimistic tune, as Wall Street welcomed a boost from Capitol Hill. Following yesterday’s decline, equities found solace in the House-passed debt ceiling bill. The futures market echoed the same buoyancy, with indications of positive movement tracing back to overnight trading, leading up to the market open.

Dissecting the Market Landscape

Today’s market presented a dynamic tableau of sector performance, almost akin to a chessboard – a few knights jumped ahead, while some pawns trailed behind.

The Energy sector was energized, benefiting from a rebound in oil prices after recent market fluctuations. The Communication Services sector, spurred by a few standout performances in the entertainment and telecommunication segments, followed closely. The Materials and Industrials sectors rode the wave of positive sentiment brought on by the debt ceiling resolution, translating hopes of increased infrastructure spending into tangible gains. Meanwhile, Financials had a strong showing, a result of positive ripple effects from the regulatory environment and improving interest rate scenario.

Contrarily, the Utilities sector found itself amidst a stormy day, as investors re-calibrated their interest in the face of improving market sentiments. The Consumer Staples sector also lagged, primarily due to concerns about future profitability and margins given the recent uptick in commodity prices.

On the individual stocks front, Match Group (MTCH) ignited the day with a surge in shares, driven by news of a new, promising acquisition. Baker Hughes (BKR) found itself basking in the glow of an improved outlook in oil prices, and Hormel Foods (HRL) managed to impress investors with its robust dividend announcement and impressive Q2 earnings.

Unfortunately, it was not all sunshine and rainbows. Advance Auto Parts (AAP) witnessed a sharp decline. The company was blindsided by its weaker-than-expected earnings report, coupled with a surprising dividend cut, which left investors wary and triggered a sell-off.

The Dance of Supply and Demand: A Case Study with Jonathan McKeever’s Trading Strategy

Understanding the ceaseless movements of the stock market requires a return to fundamentals, an inspection of the rudimentary forces at play. Indeed, at the core of every price fluctuation lies the ever-present tango between supply and demand. A clear illustration of this central concept in action is found in Jonathan McKeever’s Supply and Demand system, a trading strategy applicable to any chart and time frame.

In a recent webinar, McKeever delved into the practical application of his system, showcasing how supply and demand can be utilized to reveal the strategies of Big Players. Using his proprietary Pre-Market Zone (PMZ) indicator, he sketches a blueprint of the /ES futures every morning in the Tr3ndy Trading Room, spotlighting potential supply and demand zones.

A vivid demonstration of his system’s efficacy occurred this Thursday when the /ES was trading in a defined demand zone. Observing this, McKeever predicted an upward market movement and guided his portfolio accordingly, entering long positions that subsequently yielded significant profits. 

The detailed /ES levels used for this successful prediction can be seen in the image below:

Today, McKeever, along with co-trader Melissa Beegle, posted impressive results in the Tr3ndy Trading Room, securing profits on open positions, such as $TSLA (+18%), $GOOGL (+33%), and $QQQ (+68%). They also commenced new intraday trades that closed with a remarkable 100% win rate, including $AMD (+87%), $COST (+60%), and $BABA (+45%).

Yet, the most profound impact of this system lies in its transformative effect on traders. Many members of the Tr3ndy Trading Room, some only newly joined since the official launch announced in Tr3ndy Jon’s recent free webinar, have reported improved comfort levels and increased confidence in their trading decisions. One user, Storm Trader, commented: “Trading the ES with the PMZ and supply/demand zones has changed my trading massively… The hardest part is watching it work consistently… It works.”

If you missed last night’s webinar where Tr3ndy Jon reviews his Supply & Demand strategy, check it out here and start beating the big players at their own game.

This webinar will offer you insights into beating the big players at their own game, underlining the power of understanding and leveraging supply and demand in the stock market.

Market Closing Overview

In a surprising rally, the stock market recovered from an initially shaky start to finish on a high note today. All major indices showed significant upward momentum and closed near their day’s peak.

The Dow Jones Industrial Average gained +153.30 points to close at 33061.48, although the climb was dampened somewhat by Salesforce’s (CRM 212.90, -10.48, -4.7%) notable drop post its earnings report. The tech-centric Nasdaq index leaped by +165.70 points, ending the day at 13101.16, reflecting strong investor confidence in the technology sector. Finally, the broad-based S&P 500 index surged by +41.19 points, closing above the significant 4200 mark at 4222.29.

Overall, despite a mixed start, the day concluded on a bullish note, signifying a strong market sentiment.