SPX Showing Signs of Weakness at PCZ of a Bearish Alternate BatThe RSI on the daily has begun to rollover as the SPX appears to have rejected off of the Bearish Alternate Bat HOP level. There does not appear to be much nearby support within the range the SPX is currently trading in so if it gets back below the previous All-Time High I could see it coming back down to around $5100 maybe even $5000 - $4800. This all seems to be brought on by the increase in JGB Yields disrupting the Carry Trade. We may see them try to stabilize the carry trade around $5100 but there is a heightened chance of failure.
More on the carry trade can be seen in the related idea below.
SPX (S&P 500 Index)
US30 Forecast US30 New Forecast
Nasdaq and S&P 500 Futures Rise on Chip Stock Rally Following Nvidia’s Positive Revenue Forecast
Futures tracking the tech-heavy Nasdaq and the benchmark S&P 500 climbed on Thursday as chip stocks rallied, bolstered by Nvidia's optimistic revenue forecast, which strengthened investor confidence in the rapid growth of artificial intelligence technology.
Traders anticipate the U.S. central bank will reduce interest rates by nearly 40 basis points by year-end (FEDWATCH). Additionally, markets closely monitor economic data scheduled for release throughout the day, including weekly jobless claims, S&P Global flash PMIs, and housing figures.
Technical Side:
As noted in the previous chart, the price corrected to the support line at 39,540.
Now, it will remain in the bullish zone as long as it trades above 39,540, targeting 39,790 and potentially 40,005. However, if it stabilizes below 39,540, the price is likely to drop to 39,360.
Pivot line: 39650
Resistance Prices: 39850, 40005, 40130
Support Prices: 39360, 39070, 38790
The movement range will be between support 39360 and Resistance 40130
BA/SPX: STILL VALUEThought I would give an update. I have done nothing but buy $NYSE:BA. It remains historically undervalued. I just saw some Apache helicopters today, Airbus doesn't have those. These foolish "investors" are selling a staple of American tourism and the American war machine. I will buy as much as possible.
Buy low, sell high.
Will update in a few months.
Long NYSE:BA
Trading Plan for Wednesday, May 22nd, 2024Trading Plan for Wednesday, May 22nd, 2024
Market Sentiment: Bullish, consolidating within a tight range. Expecting a breakout, but with heightened anticipation due to Nvidia's upcoming earnings after the bell.
Important Note: Nvidia earnings after the bell could significantly impact market direction and volatility. Be prepared for potentially large, unpredictable moves.
Key Supports
Immediate Supports: 5335 (major), 5329, 5322 (major), 5307
Major Supports: 5300-02 (major), 5272-68 (major), 5235-40 (major), 5217-21 (major)
Key Resistances
Near-term Resistance: 5346-49 (major), 5369 (major), 5401-03 (major)
Major Resistances: 5412-15 (major), 5438 (major), 5472-76 (major)
Trading Strategy
Nvidia Earnings Watch: Exercise caution and be prepared for significant volatility following Nvidia's earnings announcement.
Consolidation Breakout: The market is coiling up for a potential explosive move. Focus on the 5302-5347 range for a potential breakout in either direction.
Long Opportunities: Look for bids at 5329, 5322, or 5300-02 if they hold after potential tests. Consider taking profits level to level, especially given the heightened risk environment.
Short Opportunities: Avoid shorting green candles and breaking trends, as the win rate is typically low in such scenarios. However, for those comfortable with counter-trend trades, monitor 5412-15 as a potential shorting zone if price rallies significantly after earnings.
Bull Case
Bull Flag Breakout: The current consolidation range could be interpreted as a bull flag. An upward breakout above 5347 would target 5369 and 5401-03, potentially leading to a strong upward move.
Holding Support: If the 5322 support level holds, expect further consolidation and a potential breakout later.
Bear Case
Breakdown Signals: A convincing break below 5302 would trigger a deeper retracement, potentially retesting the 5272-68 (major) and 5235-40 (major) zones.
Shorting Opportunity: If 5302 is tested and followed by a bounce and acceptance of lower levels, consider entering a short position around 5299 for a level-to-level move down.
News: Top Stories for May 22nd, 2024
🌐 IMF Highlights Cybersecurity Risks to Financial Stability: The International Monetary Fund (IMF) has issued a warning about the increasing threat of cyberattacks, which pose a significant risk to global financial stability. This underscores the need for enhanced cybersecurity measures across the financial sector.
🏦 Federal Reserve's Cautious Stance on Inflation: Minutes from the Federal Reserve's latest meeting reveal a cautious approach towards inflation, with officials prepared to adjust interest rates if economic data warrants. This has implications for future monetary policy and market expectations.
🌍 Global Trade Prospects Brighten: Reports from the IMF, WTO, and OECD suggest a rebound in global trade, driven by easing inflation and a robust U.S. economy. This recovery follows a slowdown in 2023, with significant implications for global economic growth.
📊 Economic Outlooks and Forecasts: Various economic outlooks from entities like J.P. Morgan and Deloitte provide insights into future economic conditions, highlighting the ongoing adjustments in response to geopolitical risks, inflation concerns, and policy shifts. These forecasts are crucial for strategic planning and investment decisions.
Bad data is good data... but for how long?Following better-than-expected inflation print for April 2024, investors found once again an excuse for relatively bad data to be good for the market in anticipation of rate cuts, causing the S&P 500 Index (SPX) and other indices to soar to new all-time highs. However, just three or four months ago, the general expectations were for seven rate cuts in 2024, something we quickly ruled out when these assumptions emerged. After data in the first quarter revealed sticky inflation numbers, these expectations dropped dramatically to only one or two rate cuts by the year’s end. Thus, by now, it should probably be out of the question whether the Federal Reserve will continue to prioritize controlling inflation over unemployment, which has also been slowly rising. In fact, the unemployment rate rose to 3.9% last month, reaching the highest level since early 2022, when excluding the same print for February 2024. Yet, while the 0.5% increase from the lows does not seem significant, historically, a 1% rise in unemployment has been typically accompanied by a recession. Therefore, even though the rate of increase is slow, unemployment is moving in a concerning direction. Besides that, U-6 unemployment is growing much faster, and there are many other discrepancies in the labor market data, which could potentially hint at a much worse state of the economy that is being reported.
Illustration 1.01
The monthly graph of the unemployment rate in the United States is shown above.
Another interesting detail is that retail sales remained unchanged in April 2024 from the previous month, and the yearly change amounted to 3%, while inflation rose by 3.4% during the same period. In addition to that, the United States ISM PMI contracted last month, and expansion in the United States S&P Global Composite PMI eased. Again, while these are not outright horrible developments, the economic slowdown will likely become even more apparent in the coming months as the FED keeps a tight monetary policy for longer, putting additional pressure on economic activity and exacerbating the challenges faced by various sectors and consumers. With that, the question lingers over how much longer investors will continue to interpret bad data as good in anticipation of something that is not coming and will only serve to confirm the economy is really not faring that well when it comes.
Illustration 1.02
One of the challenges in the current environment is debt servicing. This fact is strongly reflected in soaring delinquencies on credit card loans, which have nearly doubled since the Federal Reserve started the hiking cycle.
Technical conditions
Daily time frame = Bullish
Weekly time frame = Bullish
Monthly time frame = Bullish
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor or any other entity. Therefore, your own due diligence is highly advised before entering a trade.
SPX500 hourly tending to positiveThe SPX500 has some potential positives to it. These just need to convert. We're looking at trend-following indicators and momentum indicators.
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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Stratos Trading Pty. Limited (www.fxcm.com) :
Trading FX/CFDs carries significant risks. FXCM AU (AFSL 309763). Please read the Financial Services Guide, Product Disclosure Statement, Target Market Determination and Terms of Business at www.fxcm.com
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Losses can exceed deposits.
Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this video are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy.
Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed via FXCM`s website:
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Past Performance is not an indicator of future results.
SPx (it looks bullish)SPX500 New Forecast
The price is expected to attempt to reach the resistance level at 5360. It may correct down to 5304 before resuming its bullish trend.
As long as the price remains above 5320 and 5304, the bullish trend is likely to continue towards 5360. If the price breaks through this level, it is anticipated to reach 5390 and potentially 5480.
Pivot Line: 5313
Resistance Levels: 5360, 5390, 5480
Support Levels: 5293, 5266, 5226
Today’s expected trading range is between the support 5281 and the resistance 5360.
SPX STORYAs you can see, the S&P 500 index closed at a higher price on March 2nd, 2008 than it did on August 1st, 1996. However, it closed at a lower price on March 1st, 2000 than it did on March 2nd, 2008. This means that if you had bought the S&P 500 index on August 1st, 1996, you could have bought it again on March 2nd, 2008 for slightly cheaper. However, if you had bought it on March 1st, 2000, you would have had to wait until February 2013 to see a new market high.
The S&P 500 index has seen a strong upward price movement since breaking out of a 13-year consolidation period in February 2013. The index made a new post dot-com high in February 2013, and then went on to make an all-time high of 4818 in January 2022. As of June 2023, the index is trading at 4282.
I understand that many people believe the S&P 500 index is in a bubble and that we are just experiencing a bear market rally. However, it is important to consider all possibilities, as the market can be humbling. Investors not too long ago lived through a period of over a decade where they saw no new market highs, but were able to buy stocks at a lower price after 13 years.
SPY (S&P500 ETF) - Weekly - Potential Resistance Price TestSPY (S&P500 ETF) has been in an uptrend since 2023 and is approaching its all-time-high price resistance again.
$523.07 is the current all-time-high price resistance.
$497.83 is the current support level price, and also the 0.236 fibonacci level.
Bullish Scenario: If SPY price breaks out above $523.07, the next resistance price targets could be: $537, $550, $563, $575.
Bearish Scenario: If SPY price reversse back down, a potential lower-low in the price could be set over time. Support price levels could be: $508, $497, $489, $476, $466.
Note: corporate earnings, FOMC interest rate changes, government legislation, breaking news, and global events could override technical chart patterns.
Date created: 05/10/2024
SPX500 still influenced by resistanceThe SPX500 hourly is still being influenced by overhead resistance. However, the longer term trend remains firmly up. Looking to see if support proves to be compelling to the shorter-term traders.
This video is intended for the users of Stratos Markets Limited, Stratos Trading Pty. Limited and Stratos Global LLC, (collectively “FXCM Group”).
Stratos Markets Limited (www.fxcm.com):
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Stratos Europe Ltd (trading as “FXCM” or “FXCM EU”), previously FXCM EU Ltd (www.fxcm.com) :
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Stratos Trading Pty. Limited (www.fxcm.com) :
Trading FX/CFDs carries significant risks. FXCM AU (AFSL 309763). Please read the Financial Services Guide, Product Disclosure Statement, Target Market Determination and Terms of Business at www.fxcm.com
Stratos Global LLC (www.fxcm.com):
Losses can exceed deposits.
Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this video are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy.
Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed via FXCM`s website:
Stratos Markets Limited clients please see: www.fxcm.com
Stratos Europe Ltd clients please see: www.fxcm.com
Stratos Trading Pty. Limited clients please see: www.fxcm.com
Stratos Global LLC clients please see: www.fxcm.com
Past Performance is not an indicator of future results.
Trading Plan for Wednesday, May 15th, 2024Trading Plan for Wednesday, May 15th, 2024
Market Sentiment: Bullish, consolidating within a tight range after a strong rally. The market could continue to build out a bull flag pattern or break out directly to new highs.
Key Supports
Immediate Supports: 5329 (major), 5318 (major), 5302-04 (major)
Major Supports: 5272-74 (major), 5236 (major), 5208 (major)
Key Resistances
Near-term Resistance: 5347 (major), 5365-67 (major), 5386-89 (major)
Major Resistances: 5404-07 (major), 5450 (major)
Trading Strategy
Chop Zone Management: The market is consolidating within the 5302-5347 range, with an even tighter range of 5329-5347. Avoid overtrading and focus on level-to-level scalping for small gains.
Long Opportunities: Look for a bounce and reclaim above 5317 if the 5309-11 area is tested. If the market dips lower, consider longs at 5302-04, 5272, or 5287 (major).
Short Opportunities: As always, avoid shorting green candles and breaking trends. If considering shorts, 5342-47 may offer a potential dip, but proceed with extreme caution.
Bull Case
Bull Flag Continuation: The market may continue to build out the 5309-5342 bull flag pattern, potentially breaking out for a new push into all-time highs (ATHs). Target 5359, then 5375-77 in this scenario.
Consolidation and Breakout: If the market consolidates within the 5329-5347 range and breaks out above 5347, it could target the resistances mentioned above.
Adding on Strength: Monitor overnight action for potential flagging below 5219 as a possible entry point for adding to long positions.
Bear Case
Breakdown Signals: A convincing break below 5302 could trigger a deeper retracement, potentially targeting 5272 and lower.
Entry Points: Look for a bounce attempt and rejection at 5302, then consider entering a short position around 5300. Remember to manage risk with level-to-level profit-taking.
News: Top Stories for May 15th, 2024
📈 Renewed Market Rally: The stock market has experienced a renewed record-setting rally, surprising many of Wall Street's top strategists and prompting revisions of year-end S&P 500 targets. This surge reflects robust confidence in market fundamentals and investor optimism.
🌍 Geopolitical Tensions and Commodity Prices: The death of Iran's President Ebrahim Raisi in a helicopter crash has introduced new uncertainties into the oil market, potentially affecting global oil prices. Concurrently, gold futures have reached new record settlements amid growing geopolitical tensions and rate-cut expectations.
🏦 Federal Reserve's Economic Outlook: The minutes from the Federal Reserve's latest meeting are highly anticipated as they may provide further clarity on the timing of potential rate cuts and reveal the level of consensus among policymakers. This release is crucial for understanding the Fed's future monetary policy direction.
💼 Corporate Earnings Reports: Nvidia's earnings report is particularly significant as it is a key driver of the S&P 500's recent growth. Investors and analysts will be closely watching this report to gauge the health of the tech sector and its impact on broader market trends.
📊 Global Economic Indicators: Recent data releases, such as the CPI report and retail sales data, have fueled speculations of a cooling economy. These indicators are essential for assessing the overall health of the economy and potential shifts in monetary policy.
VIX - Fear indicator shows concern but not panicTrue market capitulation fear events are marked with semi generational fear levels of the charts
Were at a point of a resistance , but could easily slice through this level if we get increasing levels of uncertainty and panic entering the markets
Could we see 30? Possibly
SPx (Still or Yet...)SP500 Index Forecast
The price continues to attempt a correction towards 5281 as long as it trades below 5320. However, overall stability above 5325 would indicate a continuation of the bullish trend towards 5360 and beyond.
The bearish scenario will be activated if the price breaks below 5281 and 5266.
Pivot Line: 5313
Resistance Levels: 5325, 5340, 5357
Support Levels: 5281, 5263, 5227
Today’s expected trading range is between the support 5264 and the resistance 5370.
Meanwhile, U.S. rate futures indicate a 3.6% probability of a 25 basis point rate cut at the June FOMC meeting and a 22.8% chance of a similar cut at the July policy meeting.
S&P500 Short-term buy opportunityThe S&P500 (SPX) index gave us an excellent bottom buy signal on May 02 (see chart below) that comfortably hit our 5200 Target:
The pattern that prevailed is a Channel Up, holding since the start of the month. As long as it is supported by the 4H MA50 (blue trend-line) and the 4H RSI Rectangle holds, we expect the current consolidation to give a similar 2.0 Fibonacci extension Target at 5370, such as the May 10 High.
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S&P500: Wait for the ideal level to rebuy.The S&P500 index is neutral on its 1D technical outlook (RSI = 44.135, MACD = 2.270, ADX = 26.567) despite the fact that it made a new All Time High, in fact turning the former R level into S. The uptrend is being supported by the 4H MA50 since the May 2nd breakout and the Channel Up presents a new low risk buy opportunity close to the 4H MA100, ideally when the 4H RSI approaches the 30.000 limit. We will wait for the opportunity to go long and target the top of the Channel Up (TP = 5,400).
See how our prior idea has worked out:
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$XBI Looking to Breakout (Again)?AMEX:XBI Firstly, I may have an unhealthy attraction to this ETF. I have been in and out of this ETF a number of times over the last few months and overall, just a few $ profit.
Having said that this has been basing Since January 2022. The longer the base the bigger the break, or so the Wall Street Axiom goes. It did breakout in February 2024 and quickly failed (I have a link below of my last idea). And there is another idiom: from failed moves come fast moves, and it did move quickly down. Now it is back to the original breakout “area” so this may have been a simple shakeout.
Here is what I like about it now: It looks to have gotten support near the 40 Week MA. It looks to be regaining the 10 Week MA (Yellow) and is solidly above the 5 Week MA. This weekly chart looks much better than the daily chart.
This is my plan, “if” the market is doing well this coming week and this moves above last week’s close of $91.18 I plan on opening a new position with a maximum stop below last week’s low of 87.68 which is about a 4% position risk. My thesis is that it can easily go back to retest the 103 – 104 area which would be about a 10% gain.
My idea, your money. If you decide you like this idea, make sure that it fits with your trading plan on your timeframe.
The chart I am using is the All-In-One LevelUp tool available here on TV. Check it out.
Comments always welcome. Thanks for looking.
Trading Plan for Monday, May 20th, 2024Trading Plan for Monday, May 20th, 2024
Market Sentiment: Bullish, consolidating after a historic rally.
Key Supports
Immediate Supports: 5309-11 (major), 5302 (major), 5294
Major Supports: 5267-72 (major), 5232-35 (major), 5208-11 (major), 5150-55 (major)
Key Resistances
Near-term Resistance: 5329, 5333 (major), 5342-5345 (major)
Major Resistances: 5375-77 (major), 5404-07 (major)
Trading Strategy
Consolidation & Pattern Formation: The market is in a post-rally consolidation phase, likely forming a bull flag pattern between 5309 and 5342. Expect choppy trading with potential for breakouts or breakdowns.
Long Opportunities: Wait for a test of 5309-11 support, followed by a bounce and reclaim above 5317, as a potential long entry signal.
Short Opportunities: As always, avoid shorting green candles and breaking trends. If considering shorts, wait for a confirmed breakdown of 5302, then look for an entry around 5300 after a bounce or failed breakdown.
Level-to-Level Trading: Focus on scalping profits within the range as the market consolidates. Exercise patience and avoid overtrading in this choppy environment.
Bull Case
Bull Flag Continuation: The market may continue to fill out the 5309-5342 range, potentially leading to a breakout toward new all-time highs. Target 5359 and 5375-77 in this scenario.
Adding on Strength: Monitor overnight action for potential flagging above 5309 and below 5219 as a possible entry point for adding to long positions.
Bear Case
Breakdown Signals: A breakdown below 5302, with confirmation from a bounce attempt and rejection, would signal a more significant correction. Use caution with breakdown trades as they are prone to traps.
News: Top Stories for May 20th, 2024
🇨🇳 Steady Benchmark Lending Rates in China: Amidst ongoing efforts to stabilize the property sector, China's central bank has maintained its benchmark lending rates. This decision follows a series of bold measures aimed at addressing challenges in the property sector, highlighting the delicate balance the government seeks to maintain in its economic policies.
🏦 Federal Reserve's Upcoming Policy Meeting Minutes: Investors are keenly awaiting the release of the minutes from the Federal Reserve's recent policy meeting. This document is expected to provide critical insights into the Fed's economic outlook and future policy directions, influencing market sentiments and investment strategies.
🌐 Geopolitical Tensions and Trade Policies: The global trade environment remains tense as geopolitical issues continue to unfold. Notably, the U.S. President's decision to raise tariffs on Chinese goods has reignited debates over the economic impacts of such tariffs, with potential repercussions for international trade relations and domestic economies.
📉 Global Market Reactions to Mixed Economic Data: As the world economies emit mixed signals, global markets are poised for a potential summertime rally, albeit with an awareness of the risks that could derail such optimism. This scenario underscores the complex interplay of economic indicators and market psychology in shaping investment landscapes.
🏦 Regulatory Adjustments and Financial Sector Implications: Discussions among regulators about reducing proposed capital requirements signify a shift that could enhance the clout of banks. Such regulatory adjustments are crucial as they could affect the stability and operational strategies of financial institutions globally, reflecting broader trends in financial regulation and oversight.
Add long SQQQ May 31st $10.50+ Calls HereI bought long SQQQ $10-$10.50 May 24th to 31st calls this morning, if we hit 5400 i'll add.
The VIX is bouncing as suspected at $12 and the S&P500 wants to dip below and confirm a 5300 fake out which was my bias and the DOW (DJIA) wants to do the same at 40k
bitcoin is faking out above 67500 into an expanded flat pointing to my 63,300-63,500 short term short trajectory