Weekly Plan 11/20
Many thanks to give
Hello traders,
I hope you all had a great weekend, my Sunday spirits were dealt a huge blow by the Indian cricket team losing the finals to a reslient Australian team. There is an analogy here between performing in crunch situations in sport and trading but I will let that simmer inside me.
Moving on,
In recent weeks, the market has experienced a discernible uptrend from its prior trough, a shift indicative of dynamic alterations in market positioning. This surge has been primarily fueled by a notable influx of purchasing activity from Commodity Trading Advisors (CTAs), complemented by a perceptible rise in the National Association of Active Investment Managers (NAAIM) exposure index, which has ascended above its median to approximately 72. This uptick signifies a burgeoning sentiment of optimism, as reflected in the Fear & Greed index, where signs of greed are emerging.
his positive market sentiment comes after a period marked by bearish positioning and subdued net exposure from Hedge Funds. The recent surge in the spooz, has been remarkable, boasting a rally exceeding 400 points from the recent nadir. This rally presents a crucial juncture as the index approaches its September highs, a zone that has historically acted as a barrier due to large sellers at the spot.
As astute readers may know, this newsletter has been bullish through the downturn although there is an aspect of luck as well and even I did not expect the recovery to be this quick on the markets. Market is like a redhead at the bar, can be a tricky mistress and conversely destroy your life if you don’t pay attention.
This week is going to be a short week devoid of major news events, with only Jobless Claims coming in on Wednesday that catch my eye. On the equities side, we have NVDA 0.00%↑ reporting on Tuesday at close. That should decide direction of Nasdaq for the rest of the week.
Levels for this week