Weekly Plan 10/22
I stared into the Abyss and Abyss said "Bro its only a 3% drop relax"
Hello traders,
Hope you had a good weekend.
Last week was a great week for us where we were on the right side of the market.
I have uploaded my weekly trade review here. Those interested can read it by clicking on the button below.
All my trades at or very close to my levels.
I urge all traders to do daily and weekly journaling. I don’t care if you don’t as I don’t know you but it is for your own benefit. (passive-aggressive Algo intensifies)
Tradingview tweet pasting isn’t working so I added links in the review.
The mood of permabulls is subdued so here is an image to cheer them up
Moving on,
Look, what we saw last Friday was nothing short of a storm in the market, with a bearish mood leading the charge.
A 75% down volume? That’s not just a dip, it's a dive. And it’s not far from what we call 'market death knell' - that moment when everyone decides it's time to jump ship, causing prices to plummet.
The 90% threshold is like that ominous line in the sand, cross it and you've hit destruction city, but it could also be the point where the market starts picking itself up.
Now, onto the Fed. Chair Powell's recent speeches? A haze of uncertainty, especially around interest rates. And in a market where clarity is king, ambiguity is its jester. It throws a wrench in the gears, makes investors jittery about the future cost of borrowing and how it’s going to play with corporate profits and customer spending.
And here’s where it gets interesting. The Bank of Canada is looked at as sort of a crystal ball for what the Fed might do next. A pause in rate hikes up north could be a precursor to what's coming in the Fed’s November rendezvous. It's like watching a game of chess between these monetary titans, and their moves send ripples through the financial realm, not just in North America, but globally.
Earnings season is upon us, and it's like the market’s own brand of reality TV. The big players are about to reveal their cards, and it could either be a game changer or a facepalm moment. It’s a time when the market holds its breath as corporate numbers unveil what’s hot and what’s not.
Finally, we're hitting the economic data jackpot with the GDP and PCE releases on the horizon. These aren’t just numbers, they’re the market’s pulse and lifeblood. The Fed uses the PCE to gauge inflation while keeping an eye on the GDP for economic growth. A strong showing? It’s a tightrope for the Fed, trying to balance growth and inflation, all while the 10-year Treasury yield looms like a sword of Damocles, threatening to cross the 5% mark. And if that happens, it’s not just a domestic issue. The ripples could hit the turbulent waters of the Middle East, fanning the flames in an already tense region.
Levels:
Here are the levels for the coming week: