It was a very uneventful day, even though we had the Fed minutes out at 2:00 p.m. ET.
The $SPY stayed below 360 and held onto the lows at 355.71.
Expert technical analysis of financial markets by JC Parets
by David
From the Desk of Kimmy Sokoloff
It was a very uneventful day, even though we had the Fed minutes out at 2:00 p.m. ET.
The $SPY stayed below 360 and held onto the lows at 355.71.
Look, we’re not going to sugarcoat it: it’s hard out there right now.
Regardless of your timeframe, if you’re trying to make aggressive long or short bets in this tape, you’re getting chopped up. So are we.
These types of markets grind us out and wear us out. It is what it is. We can’t choose the market we’re given, we can only control how we react to it.
This much we know — forcing directional bets right now feels like a fool’s errand.
But with options premiums elevated across the board, there are opportunities to put on delta-neutral short premium trades where charts suggest some consolidation may be taking place. However, we need to be careful not to sell premium on stocks that have earnings releases coming up soon. So to avoid that all together, we’re going to limit our universe to index and sector ETFs. [Read more…]
by Louis Sykes
It’s no secret.
Crypto and legacy markets have traded together for some time now. Apart from the recent lack of volatility in the former, it’s all been one market.
We don’t need to overcomplicate this.
Just look at the ratio of the High Beta ETF $SPHB against the Low Volatility ETF $SPLV overlaid with Bitcoin since the onset of the pandemic. They look pretty similar, right?
by David
From the Desk of Kimmy Sokoloff
Volatility reigns, and it surely proved itself yesterday with the massive drop in the indices starting around 2:45 p.m. ET.
To me, the S&P 500 would have to get above and stay above 3,667 and the $SPY above 365.50 for this market to trend higher.
Otherwise we can continue lower. SPY support is at 360, then 358. Resistance is at 364.
by David
From the Desk of Kimmy Sokoloff
Starting at 11:00 a.m. ET, the market started to gain some traction and trended higher from the morning lows.
A little before 3:00 p.m., news from the Bank of England sent the indices all the way back down to the lows.
A round trip, to say the least…
by Ian Culley
From the Desk of Ian Culley @IanCulley
One of the most valuable tactics I’ve learned in my career is the ability to capture a strong trend as it’s trending.
I’m not talking about FOMO buying or blindly chasing breakouts.
In my experience, buying strong trends requires patience and discipline.
Today, exercising these two key traits is especially necessary if you’re trading the explosive US dollar.
Navigating the latter stages of the dollar rally presents challenges, particularly in dealing with heightened volatility. However, it doesn’t mean we can’t join in on this trend responsibly as it barrels down the tracks… or, in this case, up them.
by David
From the Desk of Kimmy Sokoloff
As of 6:00 a.m. ET $SPY was trading at 356, below the most recent low of 357. We have since bounced.
As we know, this can all change by the time the market opens.
by JC
You know me by now, I prefer to look underneath the surface to see what’s actually happening in the markets every day.
The headline number of, “What did the Dow do today” doesn’t tell the full story.
I’m more interested in the performance of the individual sectors. Which types of stocks are leading and which ones are lagging?
When it comes to accumulation by institutions, it’s easy for them to buy as much of the mega-caps as they want.
It’s hard to leave your footprints with such massive market caps and liquidity levels.
In Small-caps, however, it’s hard NOT to leave your footprints, especially for the largest financial institutions. [Read more…]