Spy!
Journal 8.30.24 - $KO - 200% Profit & $WMT 37% Profit in One DayThis is just a quick journal entry talking about the red, green, green setup. You want the weekly to for sure be "in force" and on the day have a red (pullback candle-high < high of candle before it), green candle, then next daily candle green. This is a nice day trade combo.
SPY shows more interest in rallying than beforeSPY is starting to show more signs that a breakout above the flat trading its in is coming
We see increased volume over peaks of previous rallies indicating agreement with pushing up prices
RSI's SMA starts to break through the 50 line
comparing to the QQQ, its experiences another false breakout above for the second day in a row. Showing the tech sector is attempting to turn around to the upside
SPY continues to still trade flat but show more confidence in its small rallies than previously
Opening (IRA): SPY August 30th 486 Covered Call... for a 481.76 debit.
Comments: Re-upping in SPY in slightly longer duration, but with the short call at about the same delta as the one I took off, resulting in a lower buying power effect and break even with the primary goal being to milk a little more out of August before moving onto Sept.
Again, un-sexy metrics as a standalone trade:
Buying Power Effect/Break Even: 481.76
Max Profit: 4.24
ROC at Max: .880%
50% Max: 2.12
ROC at 50% Max: .440%
US Markets Cleared For A 13% to 24% Rally - Get SomeThis video highlights why I believe the US markets are ready to make a big move higher over the next 12 to 24+ months.
Many people suggest the markets will crack or crash, or we will experience some black/grey swan event. I'm afraid I have to disagree with this belief.
Yes, there is always a chance we will see some market event. However, to disrupt the US/global economy, there would have to be some event that disrupts the world, not just one or two smaller countries.
I do believe the US is making a broad transition into the 21st century, and new leadership (Govt) is required to make that happen.
But I also believe the seeds have been planted for exponential growth over the next 10-20+ years - and many traders are too focused on the crash dummies to see the real potential.
Watch this video. Share your comments if you like.
I believe we will see pullbacks and rotations on the way up - but I don't think we'll see any big crash event until after 2031 (or later).
Get some. This is going to be BIG.
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Yield Curve De-Inverting: A Bearish September IndicatorFlying under the radar for much of this month is the spread between the yield on the US 2-year Treasury note and the 10-year note. The gap is now just five basis points, having traded at negative 0.5ppt as recently as June 25. As we enter September, notoriously the worst month on the calendar for the S&P 500, if we see short rates continue to fall while the 10-year holds steady, I assert that it would be a bearish indicator for the S&P 500.
Here’s how it might play out: if we see a weak payroll report on Friday, September 6, then chances are bad news will be seen as bad news, resulting in a flight to safety in the Treasury market. Of course, intermediate-term notes could see significant upside pressure, leading to a drop in the 10-year. The next key report following the August NFP update is the CPI report later in September. After today’s in-line PCE numbers, there should be a firm beat on where inflation stands.
Now that earnings season is over, the focus will turn back to the macro. Considering that the Citigroup Economic Surprise Index remains sharply in the red, we need to see better economic data to help support the growth narrative looking ahead. Sure, the Q2 second update on US real GDP growth was solid, and the Q3 tracking numbers are sanguine, but the market will be forward-looking.
So, keep your eye on the 2s10s spread—a yield curve disinversion during this spooky seasonal stretch could bring about volatility.
SPY/QQQ Plan Your Trade For 8-30 : Carryover In Counter TrendToday's SPY Cycle Pattern suggests the SPY will attempt to trend moderately strongly to the upside (if my research is correct).
The counter-trend mode of the carryover pattern suggests the price trend will be opposite of the last 2-3 bars - so a potential upward price trend today.
The carryover pattern suggests that price will behave very similarly to what we've seen over the past 2-3 days—moderately trending.
So, I expect the SPY to attempt to rally the 563-564 level and hold above recent lows.
The QQQ should be similar—attempting to break away from the downward price channel, then consolidating into early/mid-next week before attempting to move higher again.
Gold is within my breakout range (over the next 2~5 days), and I believe the 2564 level needs to be broken (upward) for the 2593 level to become the next target. We are still seeing active support near 2511.
Bitcoin should move back to the upside, trying to target the $62.8k level over the next 5+ days. The Flag formation in BTCUSD is holding up well.
Happy Friday everyone.
Let's make today a great day and prepare for next week.
Get some.
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Fed’s Preferred Inflation Indicator TomorrowTomorrow’s macroeconomic calendar is set for a major event! 📊
At 8:30 AM Eastern Time, we’ll see the release of the Fed’s preferred inflation indicator: the Personal Consumption Expenditures (PCE) price index. The implied move for PCE is +/- 35 points, with the estimated month-over-month core PCE at 0.2%. 📈
Stay tuned for market reactions and how it could impact the broader indices!
SP:SPX AMEX:SPY NASDAQ:QQQ #Finance #Investing #MarketWatch #EconomicData #Inflation #PCE #Fed #StockMarket #FinancialNews
SPY holds steady while QQQ sells offDuring the past week, SPY and QQQ have diverged in their paths
QQQ slowly and steadily sold off
SPY traded flat during that time
This indicates that the sell off in QQQ was primarily tech driven and did not spread to the rest of the industries
other industries look to be holding stable
SPY/QQQ Plan Your Trade For 8-29 - Breakaway in Carryover ModeToday's pattern should play out as a reversion to yesterday's selling pressure.
I did not expect to see the markets sell downward as hard as they did yesterday, but my systems were able to catch the downward trend well.
As a trader and a researcher, I try to base my expectations on what I believe to be the highest probable outcome. Yet, sometimes I'm wrong.
I've mentioned this before, and I'll probably say it again and again...
Traders must be capable of adapting to the charts. Play what is in front of you. My SPY Cycle Patterns offer assistance in what may happen based on Fibonacci/Gann price characteristics. Yet, news items (or positioning ahead of NVDA earnings) can drive market trends in unique directions.
We must understand that big news events/earnings/data can alter price trends away from the SPY Cycle Pattern triggers, and we have to be able to play the chart in front of us.
So we adapt to what the chart is telling us - always.
Remember, Fibonacci Price Theory was very clear yesterday after the first breakdown in price - this trend is BEARISH.
Watch this video. Gold is getting ready to make a move up to 2593+ and Silver wants to follow up to about $31. But Silver will lag Gold a bit - so position yourself correctly.
Bitcoin will stay range-bound over the next 5-7+ trading days - trying to run out time on the Flag Apex. Then, it should make a bigger move to the upside.
Get some.
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SPY 2-Hour Chart Analysis - August 28, 2024Double Trouble is the name of the game here, and it’s no joke. As you can see SPY just dipped below a critical support level, and things could get tricky if buyers don’t step in soon.
What’s Happening?
SPY has been bouncing around within a tight range for the past few days, but today’s action saw it break below the 554.93 support level (highlighted by the yellow dashed line). This level has been key in holding the price up, and now that it’s breached, we could be in for a rough ride.
Why Double Trouble?
Here I am referring to the fact that SPY is now stuck between two crucial zones: the broken support around 554.93 and the next significant support level down near 551.00. If the price falls to this lower support, we could see even more downward pressure, potentially leading to a deeper sell-off.
Key Levels to Watch:
Resistance: Look for potential resistance to form around the 554.93 level now that it’s broken. If SPY can reclaim this level, it might signal a reversal, but if not, the bears could stay in control.
Support: The next big support is down near 551.00. If SPY continues to fall, this is the level that needs to hold to prevent further losses.
What’s Next?
We’re at a pivotal point. A break back above 554.93 could give bulls a lifeline, but if SPY continues to slide, the 551.00 level will be the last line of support before more significant downside risk comes into play.
Stay cautious and keep an eye on these critical levels as we head into the next trading sessions. I am starting to believe that market is in a delicate position, and how it reacts here will set the tone for the days to come.
Yield curve Before Hyperinflation (QE US BONDS) BTC & SPY
The global bond market is what dictates the liquidity to stocks, its what dictates the world its what starts wars and its what ends wars.
Currently I see many post focused on "recession" "market crash" when the giant elephant in the room is the global bond market and the US reserve dollar that is currently in danger.
Why must we start foreign sanctions and battles with a country beginning with R? its very simple. There's a fight for the dollars survival. Covid 19 pushed the FRED past the point of no return and there is no going back to the structured system that was already falling apart.
Treasury Interest is now getting at dangerous levels of unpayable amounts, Government Debt is rising by the trillions in a parabolic move that is getting steeper by the month.
What has to happen?
The FRED will force the US power to globally cut rates in all major economies while the FRED also has to start cutting back to zero while halting the fall of the DXY
(forcing military action on other countries who do not cut rates and hinder their local currency)
The last time in history something like this has happened was during the 1927-1931 period of discount rate blunders.
US CPI is indicating we have entered a new stage of no turning back and this is the danger of printing money, QE will be forced in the nature of Yield Curve Control and the excess liquidity and currency will debase the markets violently in an upward notion, following this people will end up panicking being on the sidelines entering the market with heavy leverage and borrowed funds at lower rates.
This is a type of scenario that would collapse Rome, Would end the Soviet Union. Expect dangerous policies, socialist developments, anti ownership, sparks of new wars.
Only when you price this event in something like Bitcoin you can then re evaluate how much money will have to be printed to keep up this momentum without causing a depression with unemployment rates sky rocking and the Government defaulting on the debt.
2024-08-27 - priceactiontds - daily update - sp500Good Evening and I hope you are well.
tl;dr
Indexes - Yeah I spare you your time. Markets have no idea where to go right now but I think Nvidia earnings can move it for good. Absolutely no opinion on those earnings and how market will react. I don’t like to gamble on such things.
sp500 e-mini futures
comment: I won’t conjure much words today for a market inside a 50 point triangle. Clear support and resistance visible. Either scalp it to both sides or wait for the breakout. No opinion on which side the breakout will happen. Both sides have arguments and I won’t try to guess it.
current market cycle: trading range
key levels: 5600 - 5670
bull case: Bulls want to get above 5670 and to make the bears give up so they can print a new ath or at least 5700 again. I do think many bulls will give up below 5550 but that’s far away for now. Currently no more magic to it.
Invalidation is below 5580.
bear case: Bears coming through with selling spikes rather than consecutive bear bars or sustained selling. I think many stops will be around 5675-5680 and market would probably print 5700 fast then. If Nvidia misses and market pukes, below 5580 I will heavily favor the bears to reverse the madness.
Invalidation is above 5675.
short term: Neutral as it gets.
medium-long term: Bearish. I gave the 5000 target 3 months ago and we almost got there way earlier than expected. There is a reasonable chance we will see an event unfolding over the next days/weeks. Something breaks during these violent moves and this time will not be different.
current swing trade: Nope.
trade of the day: Buying the bear trap at the open anywhere below 5619. Second best was any long around 5628 since market is trying hard to show you this is support for now. Selling 5649 was also decent. Trading range with clear support and resistance. Buy low, sell high and scalp.
SPY/QQQ Plan Your Trade 8-27 Update : Possible Long Squeeze EODToday's SPY Cycle Pattern should reflect a decidedly bearish overtone to price action. The fact that we opened with a GAP downward and have waffled around just above yesterday's closing price does not really excite me.
I see price failing and waffling around in "no man's land".
This video covers the SPY, Bitcoin, & Gold.
Stay agile. I see the markets rolling downward into the end of the day today - but I could be wrong.
Get some.
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SPY/QQQ Plan Your Trade For 8-27: Close-1 GAP Trend PatternToday's pattern suggests the GAP Trend portion reflects whether today's open is above or below yesterday's close.
If today's open is above yesterday's close, then I would expect a higher opening GAP leading to a fairly strong rally phase today.
If today's open is below yesterday's close, then I would expect a lower opening GAP leading to a fairly strong selling phase today.
These types of patterns do not often reflect a reversal bar - although reversals can happen.
Overall, I believe the bias is still to the upside. But I also believe price is consolidating in early trading this week and needs to continue to consolidate before attempting to rally again later this week (Thursday/Friday maybe).
So, I would not be surprised to see price stall out a bit today.
Let's see what happens. We may see a bit of a rally or sell-off depending on where today's opening price is and if we see any substantial Opening GAP. The bigger the GAP, the more likely we are going to see price trend.
Get some.
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SPY/QQQ Plan Your Trade For 8-26 : BLANK SPY Cycle PatternToday's blank SPY Cycle Pattern means there is no definition for today's pattern in the pattern library. I will dig into this a bit further.
At this point, when we get blank days, it is usually a fairly rare and uncommon pattern that may not develop very often. That makes it hard to identify if there are not many reference points to determine what type of price action to expect.
Still, I go into detail related to what I believe will happen over the next few days/weeks for the SPY, Gold, Bitcoin and provide a series of opportunities for traders in this video.
Remember, it is not about trying to force the markets to make a move. Often, we have to sit back and wait for the next big opportunity to setup.
I believe the next 5+ trading days will present a moderate melt-up in the SPY and Gold. I believe Bitcoin will stay rather flat after the rally over the past 3+ days.
This is why I believe the markets are transitioning into a bigger breakaway phase setting up for Sept 4~10. Thus, I believe traders need to prepare for that bigger move over the next 5~7+ trading days and stay cautious right now.
We are going to move into a consolidation/peak/top phase near Sept 20~25. So, this next rally phase only lasts from Sept 5th through Sept 21 - about 10+ trading days.
Heads up.
Get some.
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Either Stock or GoldIn every analysis I have done over the years, I have said that I hold either gold or equities. I have never been in cash other than equities. These charts explain why.
From 1884 to 1970, you could buy 1 SP500 share with an average of 0.74 gold or $14.75. So there is not much point in choosing between gold and the dollar during this period because the Bretton Woods system is still in place. But the real problem starts after 1970. After the Bretton Woods system was abolished, you can now buy 1 SP500 share with an average of 2 gold coins. Yes, the stock is rising relative to gold, but it is not in a continuous upward trend, so you can buy SP500 shares with 2 gold in 1972 or 2020. But in dollar terms, things are not so good. In 1970 you could buy SP500 for $100 and in 2020 you can buy SP500 for $3000.
Therefore, when you sell a share, going for gold instead of cash may put you at a speculative loss in the short term, but in the long term you are always on the winning side.
SPX500 H4 | Approaching all-time highSPX500 is rising towards a swing-high resistance and could potentially reverse off this level to drop lower.
Sell entry is at 5,673.64 which is a swing-high resistance that aligns close to the all-time high.
Stop loss is at 5,710.00 which is a level that sits above the 127.2% Fibonacci extension level and the all-time high.
Take profit is at 5,579.72 which is an overlap support level.
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