Weekly Plan 10/15

Powell again?

Hello Traders,

Hope you had a good weekend.

It is a rather chilly Sunday evening here.

But regardless we were able to get into a long at 60 and 62 at Sunday open which has netted us 10 points so far.

I was asked about my views on Gold and Crude last week by a subscriber so here is a short note about it.

The Commodities Reaction to the recent Geopolitical events:

Gold and oil are two commodities that are highly sensitive to geopolitical events, as they are often seen as safe-haven assets or inflation hedges. Gold is a store of value that can preserve its purchasing power in times of uncertainty or currency devaluation. Oil is a key input for many industries and sectors, and its price affects the cost of production and consumption.

Gold saw a great run last Friday, with a high of week close. The odds are good it may follow through this coming week and could even tag the $2024 area if things really escalate in the Middle East. This level has acted as a strong resistance in the past. If gold can break above this level, it could signal a new bullish trend for the precious metal.


As far as crude is concerned, $90.60 seems like a area where it could find sellers.

Equities:

The tug-of-war in the equities market, exemplified by the S&P 500, reveals the financial ecosystem's inherent complexities. Last week, the index closed on a higher note compared to its opening, providing a sigh of relief for bullish investors—marking their second consecutive week of gains. The immediate future for these optimistic traders hinges on defending the 4265 threshold on ES. A breach below this level would resuscitate the lows witnessed in the first week of October—a chapter the bulls are loath to reopen.

Caught in a fluctuating corridor between 4,200 and 4,600 since May, the S&P 500's trajectory epitomizes the tension between countervailing economic forces. On one hand, the index grapples with an assortment of headwinds: the specter of inflation, expectations of monetary tightening, logistical snags in supply chains, and the unpredictability of the political theater. Conversely, robust earnings reports and resilient consumer spending serve as stabilizers, keeping the index from a downward spiral.


Moving on,