Opening up the trading day we looked long in futures and caught a portion of the upside move, taking a long rebound signal off the open. As the day concluded, and market momentum began to wane, we took a reversal back down towards the VWAP. Half of said position is short position covered, and we will look to close out and potentially flip on a continued break.
The market unfolds in a fascinating series of self-replicating patterns, and one of the most interesting is symmetry. In tonight’s video we’ll review where you’ll find this resistance in SPX, along with levels on a few stocks and setups that may be worth considering into the end of the week.
Well, are they being defended or are they being forced to de hedge?
This is the answer to the question, “Why didn’t we crater today?”
Market behavior is all about positioning for what is going to happen and we have seen a lot of that today in bonds. However, what is going to move the market is not on the chart right now. It’s not what most traders are considering and it’s happening tomorrow and Thursday.
Despite geopolitical issues, the main issue for the FOMC is inflation. With crude, grains, meats all soaring, it is difficult to a see a path for the FOMC that does not include a hawkish monetary policy and that is exactly what bonds challenged today. It’s all about Powell and his two days of testimony.
On Friday we reviewed a setup in Tesla and if you came into Monday with that analysis you were able to make some solid cash. A similar setup is starting to take shape again and is probably worth watching into Tuesday.
The current news cycle has proven chaotic, but I believe there is opportunity in this, so let’s take a look.
Traders keep asking, ‘What are you doing during this volatility?’ Here are several key tools that I use, that are all free. I’m going to discuss the $ticks, volspread, VIX, and more. If you want to learn more and pick up my free grid, check out my free live session tomorrow at 3:15 CT by signing up here: php8.simplerdev.com/key/