5/23: Market Recap, Outlook, and Trading PlanToday's Recap
The failed breakdown, my primary setup, and how it leads to profitable trades are all covered in this newsletter. Along with providing the day's workable trade plan, I also discuss how I've been managing my long since last week.
Market cycles between Trend and Chop are common. Our 105-point rally last week was an extreme Trend, and it was followed by an untidy Chop as a base was being built. It's crucial to keep in mind that nobody can forecast intraday price movement, especially in Chop. When a setup triggers, a trader's responsibility is to respond and manage the trade using a predetermined procedure.
Debt Ceiling Crisis
The United States government is facing a debt ceiling crisis. The debt ceiling is a limit on the amount of money the government can borrow to pay its bills. The government is currently about $28 trillion in debt, and the debt ceiling is set to be reached on June 1.
If the government does not raise the debt ceiling, it will be unable to pay its bills and will default on its debt. This would have a devastating impact on the economy, leading to a recession and a loss of jobs.
Congress is currently negotiating a deal to raise the debt ceiling, but there is no agreement yet. The Republicans are demanding spending cuts in exchange for raising the debt ceiling, while the Democrats are refusing to make any cuts.
The debt ceiling crisis is a major threat to the economy. It is important for Congress to reach a deal to raise the debt ceiling as soon as possible.
Bond Yield Rates
The yield on the 10-year Treasury note opened at 3.717% today. The rise in bond yields is due to concerns about the debt ceiling crisis and the prospect of higher inflation.
Higher bond yields make it more expensive for businesses to borrow money, which can slow down economic growth. They can also make it more expensive for consumers to borrow money, which can lead to a decline in spending.
The rise in bond yields is a sign that investors are worried about the future of the economy. It is important to watch bond yields closely, as they can provide early warning signs of a recession.
Key Structures
Key market structures I'm tracking include:
The pink triangle that contained all of last week's action pre-breakout
A 2-day triangle since Friday
The 4166-71 area
The large broadening formation pattern in blue
Due to ongoing debt ceiling negotiations, there is increased headline risk and risk of large, bi-directional moves out of nowhere.
The Week-Long Triangle Structure
This structure triggered the recent breakout. The market dynamics can be summarized as follows:
Bulls control above the structure
Bears control below the structure
The back-test level is now 4140-42.
The Yellow Uptrend Channel
This structure, connecting the May 4th low and this week's low, is a crucial support area at around 4140-42. Bulls will want to hold this structure.
Supports and resistances are listed, and I discuss potential bids and trade scenarios for both bull and bear cases. In summary, 4195-4220 is chop, and there is a heavy headline risk due to the debt ceiling.
Support Levels
As long as 4147 holds, we continue our upward trajectory.
The 4140-42 area, derived from the triangle structure and the yellow uptrend channel, is an obvious structure bulls want to hold.
4205, 4195-97 (major), 4191, 4180, 4167-71 (major), 4155 (major), 4144, 4130-35 (major), 4123, 4112, 4097-4100 (major), 4092, 4077-80 (major), 4069, 4061, 4053 (major), 4041 (major), 4015-20 (major), 3995 (major)
Resistance Levels
Initial resistance was at 4192, acting as a magnet, as previously identified.
According to the blue broadening formation, the next major resistance level is now at 4242.
4217-20 (major), 4231, 4240-42, 4248 (major), 4261 (major), 4268, 4280 (major), 4288, 4306 (major), 4319, 4325-30 (major), 4342.
Trading Plan
As long as 4195 holds, we keep filling out the triangle, targeting 4231, 4242+. If 4195 fails, we start the sell and I'd be looking to go short.
Wrap Up
Never fight the trend. Stay patient and adhere to your trading plan. Follow the key structures, resistance, and support levels closely.
Disclosure: This is not financial advice and is for informational purposes only. Please consult a professional financial advisor before making any investment decisions.
Marketupdate
5/22: Market Recap and OutlookCharting 101, Trailing Stops, Bond Yields, and the Debt Ceiling
Introduction
In this newsletter, we'll recap the recent market action, discuss the power of holding runners, talk about strategies for trailing stops, and provide an update on bond yields and the debt ceiling. We'll also provide an actionable plan for the upcoming trading day.
Market Recap
Last week saw a tight trading range, with the market eventually breaking out and reaching 4228. Friday was OPEX day, which led to choppy trading conditions and the market mostly pinned around 4200. This week's market action demonstrated many foundational charting concepts, such as the transition between Chop and Trend.
Trailing Stops
Trailing stops are an essential part of a trading system, helping to lock in profits and minimize losses. The strategy involves dragging the stop up behind the most significant swing low on the 30-minute chart, usually once or twice a day. The goal is to eventually get stopped out, with the stop tightened as the trade progresses.
Actionable Plan
For the upcoming trading day, keep an eye on the following structures:
Blue broadening formation: Resistance is at 4245, while support is at 4040. A breakout has a bullish bias, with the next major magnet at 4305.
White broadening formation: We broke out on Thursday, with a backtest at 4200.
Purple rising channel: Support is at 4148, controlling the short-term uptrend.
Triangle structure: The measured move target is in the high 4260s.
Support and resistance levels, as well as potential entry points for long and short positions, are detailed below:
Support Levels
4200-4197 (major), 4192, 4176, 4166-70 (major), 4155, 4145-48 (major), 4135(major - triangle backtest), 4128 (broadening formation support), 4114, 4105, 4092 (major), 4078 (major), 4067, 4061, 4055 (major), 4040-43 (major), 4033, 4015-20 (major).
Resistance Levels
4216-4221, 4228, 4239, 4246 (major - broadening formation), 4255-60 (major), 4275-80 (major), 4289, 4300 (major), 4305-08 (major), 4320-23 (major), 4342-45 (major), 4360, 4368 (major).
Summary
After a clean, easy rally leg, expect some complex, messy trading as the market transitions back into Chop. React to the market action using the provided plan, with a loose lean towards a bullish bias as long as 4200 holds. If 4200-4197 fails, a pullback is likely, and short positions may be taken.
Bond Yields
The yield on the 10-year Treasury note rose to 2.95% on Friday, the highest level since May 2019. The rise in bond yields was driven by concerns about inflation and the Federal Reserve's plans to raise interest rates.
Debt Ceiling
The US debt ceiling is currently set at $28.9 trillion. The Treasury Department has said that it will run out of money to pay its bills on October 18, 2023. If Congress does not raise the debt ceiling by then, the US government will be unable to pay its bills and could default on its debt.
Conclusion
The market is facing a number of headwinds, including rising inflation, rising interest rates, and the looming debt ceiling deadline. You should be prepared for a volatile market in the coming days and weeks ahead.
Disclosure: This is not financial advice and is for informational purposes only. Please consult a professional financial advisor before making any investment decisions.
Riding the Bull: Are We Set to Rally Higher?SPDR S&P 500 FUTURES CME_MINI:ESM2023 & AMEX:SPY ETF - Evening Market Update - 10/18/23
Today's Recap
We saw a remarkable movement in ES over the past week. It was technical analysis at its finest: a 10-day tight range was followed by a breakout, just as the underlying trend suggested. As per historical trends, these range breakouts can lead to sustained rallies.
Key Structures
Several key structures have emerged that are worth watching:
The Week-Long Triangle Structure: This structure triggered the recent breakout. The market dynamics can be summarized as follows: bulls control above it, and bears control below it. The back-test level is now 4140-42.
The Purple Uptrend Channel: This structure, connecting the May 4th low and this week's low, is a crucial support area at around 4140-42. Bulls will want to hold this structure.
The Blue and White Broadening Formation: This structure has been a focus in our discussions. The white broadening formation resistance, at around 4197, was the target for weeks, and it broke out late today.
Support Levels
As long as 4147 holds, we continue our upward trajectory.
The 4140-42 area, derived from the triangle structure and the purple uptrend channel, is an obvious structure bulls want to hold.
4197, the previous resistance, has now turned into a support level.
4197-95 (major), 4182-85 (major), 4175, 4168, 4156 (major), 4140-42 (major - backtests the triangle breakout), 4135, 4126 (major - triangle support), 4114, 4106, 4092-95 (major - broadening formation support).
Resistance Levels
Initial resistance was at 4192, acting as a magnet, as previously identified.
According to the blue broadening formation, the next major resistance level is now at 4242.
4212, 4221 (major), 4235, 4243 (major), 4249, 4263 (major), 4270-72, 4277 (major), 4296, 4306 (major).
Trading Plan for Tomorrow
The plan for tomorrow is straightforward:
If the market remains above the key structures (4140-42), we should anticipate a continued upward trend toward the resistance at 4242.
However, if the market dips below these structures, it could signal a shift in control to bears.
Wrap Up
Stay patient and adhere to your trading plan. Follow the key structures, resistance, and support levels closely.
Disclosure: This is not financial advice and is for informational purposes only. Please consult a professional financial advisor before making any investment decisions.
BTCUSDT Price PredictionAs we can see on the 4h chart a down spike that overshot the upper bollinger band has been followed by a deep correction which failed to reach the upper bollinger band.
A second sell off is expected to test the low of the spike and/or the lower bollinger band.
A conservative and safe target could be the level of structure along the way which has been shown by the yellow rectangle.
Is AUDJPY set to take a short-term pause? After days of buying, we are seeing a small pause at this point in the day. The AUDJPY has started to see some red after a 5-day rally. Price is stalling at a previous level of resistance, seen at 89.90.
We still see price on an uptrend with a break of the last downtrend. But buyers need to clear this resistance point to get the trend back on track. The MA supports the uptrend, as does the CCI being above the 0 line. A lower high has formed on the CCI, but our main focus will remain on price and the current level of resistance.
If we see a higher break, we will look for a test of 90.50. If resistance can hold buyers and we see anew new move lower, we want to see the trendline hold, or it could be a sign that sellers are planning a deep move.
Good trading, and enjoy your weekend.
US Dollar and Crude Oil Euro UpdateHey Traders so today wanted to give quick update on these charts. US Dollar still showing signs of strength and Crude Oil is now back in downtrend in my opinion. Keep in mind that all these technical developments can change daily. But I believe you only have to check it once a day when the market closes to see the long term trend. I think if you see a bottom or top formation on the daily charts normally it is accuarate because it takes the market time to carve out these long term formations. Of course always keep in mind fundamentals can alter these techincal analysis formations also.
Enjoy!
Trade Well,
Clifford
A Major level for USDT.DUSD.T dominance is forming an ascending triangle, which is considered bullish. However, we did break down from the triangle. I published the first altcoin season idea on December 17th, 2022 and I believe that a pump is coming.
Currently, we are running into heavy Support from the 50-week moving average. For altcoins to remain bullish , we need to break this level. If we don't break through this weekend, we may see a large green candle.
So, it's best to be cautious and not risk your money right now. Stay out of the market and wait for the candle to form before making any decisions. The market could potentially experience a hard dump or a hard pump, so it's important to be informed. I will update this idea as more information becomes available.
Have a great day folks
Bitcoin movement in FOMC! So right now Bitcoin is bullish + bearish as well it's upon whales now how they are going to play BTC and FOMC results, higher changes are for 25BPS well let me tell you what mindset you should have right now!
Till the time we don't break the 21430-21300 key support level don't be bearish
Right now I am still Bullish on bitcoin and I am hedging the trades just because I have my long-running from 21500
Again be bullish till we break the support of 21300 ✅
General US Market Update - HeatmapHeatmap
The Heatmap from yesterday (SP500) shows a mixed bag which is a result of a 'natural pullback' following a decent rally over the last period and some concerning FED news as listed below.
General Market Update
Stock Market Falls Following Cautious Comments From Fed Official
The stock market ended moderately lower Thursday, as the Fed suggested they will keep raising rates beyond most expectations to curb inflation.
Economic Data, Fed Comments, Treasury Yields
The Labor Department's initial unemployment claims fell to 222,000 vs. 225,000 in the previous week, meeting estimates and hinting at continued strength in the labor market. Housing starts and preliminary building permits for October came in above estimates, but still slowed compared with September.
The Fed said rate hikes have had limited effects on inflation so far and that more work has to be done. They also said that rates are not yet at a level that may be considered sufficiently restrictive.
Investors now place an 80% probability of a 50-basis-point rate hike at December's Fed meeting, down from an 85% chance a week ago.
The 10-year Treasury yield jumped to 3.77% Thursday, recovering a part of this week's slide.
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US Market Update Heatmap NASDAQ for last week
The heatmap for the Nasdaq for the last 5 trading days looks great. Many names could improve by more than 10% with only very few exceptions, TSLA being a big outlier last week.
Overall a very promising week which could actually indicate that we are getting very close to the bottom of the current bear market.
General Market Update
The US stock market ended a powerful week in an optimistic mood, rallying into the close as the strong dollar fell. Investors look to be rotating into a more aggressive stance.
The Nasdaq, which has been suffering severe losses in 2022 so far, performed best. It rose 1.9% for the day and ended with a weekly gain of over a giant 8%. Crucially, it is now back above the 50-day moving average. It remains down more than 28% for the year.
The S&P 500 managed to squeeze out a gain of 0.9% Friday, raising the weekly total to nearly 6%. The 200-day moving average now looks in reach after it climbed away from its 50-day line.
Blue chip stocks lagged the other major indexes following recent outperformance. Nevertheless, the Dow Jones Industrial Average still closed up 0.1% for the day and more than 4% for the week. Nike (NKE) and Walt Disney (DIS) were among the top performers.
Volume was down on both the Nasdaq and the NYSE, no surprise given Thursday's massive volume. Breadth was solid in both exchanges, with advancers outnumbering decliners about 2-1.
With many near-term hurdles cleared, the stock market looks to be in a good position to make the turn. However, swing-traders still have to expect increased volatility.
Weakening Dollar
The strong dollar has been a big headwind for the stock market, but signs of peak inflation have seen the currency fall in recent days.
Friday's weakness in the U.S. Dollar index extended a move that began Thursday following lower-than-expected U.S. consumer inflation data.
Many companies have seen their bottom lines hit due to expensive foreign exchange rates. If the dollar continues to weaken, it will conversely boost earnings for firms with foreign operations, bolstering their stock price.
Trendmaster Market Update - Monday October 3rd -Welcome to Monday October 3rd
The Q3 close last Friday showed a complete route in the general markets as the quarterly close saw the DOW, NQ, and SP down 16%, 17%, and 20% from their summer rally highs. The Dollar Currency Index is still fully parabolic from it’s double bottom from May 2021. The collapsing value of the Swiss Bank Credit Suisse has brought to problems in Deutsche Bank and several other institutions across the European continent. That being said everyone is bearish and expecting more downside and historically Q4 is the strongest quarter.
*Breaking* - hastily announced emergency FED meeting (US) has been called for today at 17.30 UTC
-Markets
Both the Nasdaq and the SP500 are at critical support. The Nasdaq closed the quarterly under 11k signaling the lowest close in 2 years however still holding above it’s 9.7k pre covid dump high. A gain of 11.5k is the only thing that matters to the upside -
The SP500 also closed the Quarter under 3.6k another 2 year low with only the pre covid dump high at 3.4k to offer any levels of importance to the downside. -
The VIX is still hovering around the low 30s and at a potential failure point. A loss of 29.5 and the major support there could see some bullish relief as markets have been generally crushed and fear and panic are reaching 2008 levels. Anything above 35 and the bearish markets should accelerate to the downside. -
-Crypto
BTC is still hovering near its main resistance as 20k which is the September, July, and Q3 open. This is the main area to break out from which upon its gain should see a test of 21.2k at the least. To the downside 18.6k has remained an important swing in price action and between that and 18.4k there any major losses or level there should flush the price back into the 17k zone. -
ETH although retracing more than BTC following the highs from the summer rally, ETH continues to hold above the June/July range high at 1.27k. Any loss of level around 1.22k should see a retest of the previous range levels at the low 1100s. To the upside a regain of the floor of 1.4k could see ETH rally to its September open levels of 1.55k. -
BTC1! - BTC trading on the CME is opened up monday with a slight gap just above 19.2k at that is the Daily, Weekly, Monthly, and Quarterly open. The CME Report showed nothing significant other than Exchanges/Brokers being extremely short as of last Tuesday. Asset Managers/Institutions are still completely out of position on their longs that were added in November ‘21, and April, August of this year are severely under water. CME traders want the regain of 20.4k to test up into the 22k zone. There is also a very old CME gap from 17.6k to 17k which is still untouched from the 2020 runup. Any fill of that gap would be critical in the overall price and a buy back or continued loss of that zone would dictate BTC’s direction for the coming quarter. -
Spotlight
NFLX - Netflix has been playing out a beautiful 17%+ range for the past 6 weeks with major support at 215 and resistance at 250. Buying higher lows from the support and Selling lower highs from the resistance is still viable until proven otherwise. A loss of the 215 low should see a retest of it’s June monthly open at 198 while conversely a breakout of 250 could see the gigantic gap between 252 and 330 finally filled. A breakout however, is only likely in a general market rally. -
Financial Events
The emergency FED meeting today at 17.30 UTC is of critical importance to the markets as the financial system is showing signs of cracking. The only item listed under Matters to be Considered is “Review and determination by the Board of Governors of the advance and discount rates to be charged by the Federal Reserve Banks.
Other important items this week:
Wednesday Oct 5th - Crude Oil Inventories
Thursday Oct 6th - Initial Jobless Claims
Friday Oct 7th - Unemployment Rate - Forecast 3.7%
Chart to Watch
The DXY Dollar Currency Index is generally the canary for market Bullishness or Bearishness as it has an inverse relationship with the general markets. The fact that we are at the midpoint of the “Dot Com Bubble” high structure is a frightening wake up call. It has continued its fully parabolic move since the double bottom back in May 2021 and shows no signs of slowing. The important swing low at 111.3 needs to be broken and retested bearishly which would signal a general correction in the DXY and see much needed relief flood into the markets. It has currently only tested structure at 111.6 in the past few days of retracement and looks primed to send off to new highs. The eventual parabolic break of the DXY will be a catalyst for a significant bear market rally. -
Is Bitcoin about to beat the 200 week moving average this week?Traders,
Bitcoin is working hard against current overhead resistance. Currently, it has beaten the 200 week but to be sure, we need to see a close above 22,800 in 2 days when the weekly candle closes.
Also, I will review what the dollar and VIX may indicate regarding market price action next week.
And finally, we'll review a few of the altcoins that continue to call my name.
Stew
#SPX - Update 7-25-2022SPX had a solid two week run hitting our 4000 Target before showing a pullback. SNAP ER showed an early sign of possible Earnings outcomes for Social Media Stocks. There are still Dip Buyers in the Market so it is possible to see a continuation into 4100 depending on reports. Wednesday is a Heavy Binary Day with Bigger ER stocks and FOMC. For today I'd watch the price action and take smal quicker plays until Wednesday. If SPX can defend 3938 we can see a drop in the markets to 3900, 3880 next. I would wait for SPX to reclaim 4000 for calls.
#SPX Update 7-20-2022#SPX had a great run up into our 3974 Target. Nice move after finally breaking above 3900. Yesterday we saw more of a consolidation than previous. We cut our calls at our 3974 target for now. SPX has a chance to. Pullback from here if we dont enter the gap today. If we can break through we will see our 4000-4017 target area. Hard to enter calls here after the size of run. Cant enter puts with no reversal confirmation. Be PAYtient and let the trade come to you.
#SPX Update 7-19-2022#SPX finally broke out over 3900 and continued strong up through close. NFLX was a big watch AH and ended up showing good numbers. We have TSLA AH tomorrow. SPX can continue this move up into 4000-4020 area by friday. 3957 and 3974 are still targets before 4000.
Do not let high volatility deter you from trading if you have reliable charts you can read. Instead conwider controlling your risk with Position Sizing. Consider leaving your loss limit the same but lowering position size. This allows you to limit loss if the trade goes against you, and allows you to add position size at set targets when the charts continue in your favor.
#SPX Update 7-18-2022SPX showed a strong Gap up after the weekend with a continuation on some bigger Bank ER numbers. It failed the breakout attempt above 3900 early and stayed in range throughout the morning. Once SPX fell below our 3880 support, we saw a big drop with catalyst from AAPL news and Housing Numbers. AAPL has been relatively strong and finally seen a big day of weakness which fueled the market to drop. The pops were being sold off into close. For tomorrow SPX needs to hold 3838 level or we can see a quick move to 3800. Below we can see 3778, 3760, 3741 below. SPX will need to break todays high's to set up for a move to 4000.
BTC/USDT WEEKLY ANALYSIS JULY 2022So here is detail analysis of btc on weekly time frame BTC is trading in long term bearish trend and now currently trading at 19.4k with strong support 18.5k and 17.5k which is local Demand zone and 29k ATH Resistance and strong resistance of last upward trend at 23k . On breakdown from 17.5k market will be on the way towards deom 13.5k to 12.8k area.
here most important areas are 17.5k which needs to hold otherwise market will be towards 13k . and Resistance level 23.4k needs to break for the confirmation of new uptrend
#SPX Market Update Update 7-10-22SPX presented some great opportunities last week off our double bottom at 3741. We had a 176 point run from there. If SPX can reclaim 3945.86 the Bulls will make a higher High on the Daily Chart. Still well within a “Bear Market Rally” and I would continue to treat it as such. If we lose 3870 early on it is possible to see a 50 – 70 point drop. We have CPI Data on Wednesday that will be the key catalyst this week. We can see some consolidation until then. Thursday we have Job Data followed by Retail Sales Numbers Friday. . In these types of market conditions it may be best for most traders to sit and watch or consider quick scalps. You can’t get aggressive when Index has already ran as much as it has. Be aware of this otherwise you can blow up an account if you get too aggressive on the wrong day. We should see the Market set up for a Nice move after Wednesday.
BTCUSD ReviewIt has been an though week for the markets in general with crypto being hit the hardest. So what does that mean for the near future for crypto? Well here is our current thoughts on Bitcoin.
We have been anticipating the completion of the "C" wave for some time and it has finally reached an area that we consider to be a key level of support. This area consists of the following confluence, (Previous ATH, Long term trend line touched and finally the weekly 200 SMA)
It is difficult to catch a falling knife as many would have heard before, but if crypto wants to find a bottom it could be in this range of 19k to our lower zone of 13k. For now we are keeping our eyes on these two zones.
This is the time to manage your risk well and be disciplined when entering the markets, for the time being the most probable trades to look for would be to short rallies.
Happy Trading,
Wolf Pack Team.
XVGUSDT - BULLISH SIGNAL UPDATE!!As you all know, XVG is not performing well from last 16 weeks and according to the Chart patterns, Decending Channel is formed, Breakout formation is also nearly there and also indicators giving bullish signal.
DYOR Before taking trade, as I'm not responsible for your loss.
RISK FACTORS:
Market/ BTC CRASH
Duration:
MID-Term (3 - 10 Months) Trade.
Happy Trading :)
Good Luck!
If you like my idea, please support:
Binance Smart Chain ( BSC ): 0x69Ea86D0f6B762fC36A322b0C833D2bd04534b3d
TFUELUSDT - BULLISH SIGNAL UPDATE!!As you all know, TFUEL is not performing well from last 16 weeks and according to the Chart patterns, Ascending TRIANGLE is formed, Breakout formation is also nearly there and also indicators giving bullish signal.
DYOR Before taking trade, as I'm not responsible for your loss.
RISK FACTORS:
Market/ BTC CRASH
Duration:
MID-Term (2 - 8 Months) Trade.
Happy Trading :)
Good Luck!
If you like my idea, please support:
Binance Smart Chain ( BSC ): 0x69Ea86D0f6B762fC36A322b0C833D2bd04534b3d