Back in Business?
What Happened Yesterday?
As we discussed in yesterday’s post, we got got the fed day volatility that we were anticipating.
The markets started with a strong day but then found resistance at the 21 ema and started to fade
But
The market made a great second effort after fading to close at highs of the day.
This is a nice change. In the big picture the market has reclaimed that prior consolidation area and if it can hold it, the market sets up for making a push up towards the other consolidation levels.
Now would be a great time to subscribe 👇
Now what?
There seems to have been a shift in market sentiment on Twitter and people are starting to look at long setups again.
The day after fed meeting tend to have a bit of volatility. The first move is often reactionary and it is not uncommon for it to be taken the other direction.
Caution is still warranted. This is still a bear market and it is still headline driven.
Game Plan:
A couple scenario could playout today:
Bears take control - a strong fed day rally does not make a new trend. The trend has been down all year. If selling hits and starts to escalate there will be a lot of short setups.
The anatamoy of my short setup is a a rally up to a short moving average 9 and/or the 21 ema that then gets rejected. My scan had 221 names on it yesterday so there should be opportunities.
Gap down and rally - This would be the ideal bullish scenario as bulls prove that they are willing to support a dip and not just take profits. - Start looking through the lists of setups.
This VIVO (not a buy recommendation) would be the template of the type of chart formation 'I’m looking for structurally. - a show of power that has consolidated and has been supported.
Cheers,
My Reading List
I’m an avid reader and always have a book (or several) that I’m reading. I’ve started The (Mis)behavior of Markets by Benoit Mandelbrot.
Mandlbrot was a heavy influence of Taleb whose Black Swan remains one of my favorite books. So far this book is a great read.
Trouble runs in streaks. Market turbulence tends to cluster. … And they also know that it is in those wildest moments—the rare but reucrring crises of the financial world—that the biggest fortuntes of Wall street are made and lost.
“Not Investment Advice Disclaimer”
The content covered in this blog is NOT to be considered as investment advice. I'm NOT a financial adviser. These are only my own personal and speculative opinions, ideas, theories, hypotheses, charts, technical analysis (TA), insights, curated news publications, and price prediction(s).
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