Weekly Plan 2/20
short week but are shorts weak?
Hello traders,
Hope you had a great weekend of rest and recreation.
Last week was pretty good for us but not for people who bought far OTM puts or calls as the markets stayed in a tight range.
I don’t want to rehash all the good trades of previous week, you can see them on my twitter or in the previous posts on here.
Major events this week:
1) PMI: On Tuesday we will get Services and Manufacturing PMI. I think that number will guide rest of the Tuesday session for us. I’m really not into speculating news releases but services PMI can come in hot and exert downward pressure on the markets.
2) Canadian CPI: Tuesday we get Canadian CPI at 8:30am. Ideally most CME traders can ignore this release but I think for this release I would pay close attention to the print. Why? Because if this print comes in softer than expected then we can see how the Bull-whip effect has fully materialized outside of US.
3) AI hype train being derailed by NVDA 0.00%↑ earnings?
I will be watching the NVDA earnings extremely closely as I think the recent rally in the stock due to OpenAI’s offerings has caused speculators to hop on the bid for $NVDA. I would be looking at the guidance they offer and assess the situation accordingly.
4) GDP, PCE and Jobless claims: I think all these three datapoints in conjunction can tell us Fed’s direction in the coming FOMC meetings. In amongst all these, we also have the FOMC minutes on Wednesday to ascertain if the Fed is on the right path with respect to rates.
Moving on.
ES plan for the week: