The energy sector, in addition to high fuel prices, have been in focus most of the year until we finally saw a bit of a reprieve this summer. However, I’m betting this break won’t last long, as I’m spying buy setups in the energy space along with a buy setup in a key energy stock, XOM. Let’s discuss the whys and the how beyond how to trade these setups.
The indexes have finally begun a swift pullback, but it remains to be seen how long it’ll last. Let’s talk about key relative strength and weakness names along with key areas to focus, including hot tickers coming up on earnings this week and more. Let’s talk NVDA, SMH, MSFT, XLE, the put/call ratio and more.
After trading to a recent swing high of 4327 for a test of the 200 day SMA we now find ourselves back at the starting point of 4137, the August monthly open. As discussed previously, I do look for the balance at 4120 to trade and for that to tell us what we need to know about who is really winning the fight. Stay tuned for J. Powell Friday morning. All attention appears focused there.
Main focus is Coffee while trading the few others that I’ll go over in tonight’s market update. Cotton and OJ look to be poised for some promise. Still like the grains. Trying to hang in there with Gold, but its not been easy. The Dollar remains bid and the Treasuries soft in front of expectations for this Friday & J. Powell.
The Voodoo Fireline isn’t just the most important level of all the various Voodoo Lines, it’s also the spot I’m watching to decide whether this market is turning back down or consolidating in an uptrend.
Risky week coming up with Fed at Jackson Hole. Let’s review a couple of significant red flags you should know before Monday.
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.
That’s right, I’m expecting another selling event into the last week and a half of August left. In this video I give reasons why — based on a few interesting indicators showing me that /ES at 4100 and lower wouldn’t be surprising at all.