Broad Market Outlook
As the dog days of summer continue as the overall market continues to drop. The feeling that the market of 2022 is about to return as it feels like a bear market is around the corner. Yet, its trading action that the market needs, pull backs are healthy and needed for the market to push higher with time.
Friday's action, the gap down after a few day sell off was exactly what was needed for a new short term pivot low to form. I still feel that we are shifting out of the breakout market we have grown to love. As the market shifts into a consolidating market.
For now its fair game that the overall market continues to flag between 430 and 460, a 30 point range that the measured move higher would send us to new all time highs.
Now before the after the fact obvious move pushes higher, it will more then likely seem and feel like the market is about to put in new 52 week lows before the turn and run back to new highs.
With the new pivot low formed, if we get some follow through coming into the week, Friday's low should be the line in the sand of knowing to put risk on vs running back to cash if that low is taken out.
Energy stocks continue to act as the sneaky leader as it continues to inch higher out of the macro wedge it just broke out of.
Material stocks in the short term is running into support, yet broadly still shaping up for a move to new highs after it shakes out support.
As most sectors and markets look like the only possibility are break downs lower, are often the times where we can find low risk reward trades that can be put on vs the current lows. Where risk might be 1-3% vs the short term low compared to when the market looks perfect and the risk is the same yet the upside move is exhausted.
These last two weeks of summer will feel like paint is drying as virtually most will be on vacation. Do not let these two weeks wear you out trying to do too much in a market that needs to settle out during a time when most are aways from the screens.
The dog days of summer will pass and with that should be a better end of year market for us.
The Entire 11 Step Series is Published!
After 7 years of writing and the last 18 months updating, editing and getting each book in the series published we can breathe a tiny relief. Yet the work is not done as we continue to update and improve the lessons in these books!
We have lowered the soft cover book cost down to $4.99 and the hard covers down to $9.99, if you have enjoyed the series and would like to add the entire series to your bookshelf you can do so at an affordable price. As always if you can support by leaving a review on Amazon with a picture of the book we will credit you any cost you incur!
Sensitive - sectors that have moderate correlations to overall market conditions.
New Trading Experts Comma Day Shirts
The new Comma Day shirts are off the printing press and en route!
I want to thank all the Trading Experts members who have joined the pre order list! We will be including a few extras in those who first got on the list!
There is still time to get on the list where the 3 pack is only $50 for all 3 shirts or $25 for 1!
Cyclical - sectors that are more sensitive overall market conditions.
Defensive - sectors that tend to outperforming during sub par market conditions.
Big Picture Set Up's
DIS has been sitting down here and holding up near macro support, it most likely will need to shake that 52 week low area of 84 first before we see any change of trend. This is more of a longer term M1 idea where starting a position here could lead to a solid risk reward hold in time.
With earnings in the rear view this now almost 2 quarter long earnings flag continues to set up for a move through 65 when its ready to go.
Still sitting in this MRK from the mini base breakout that is current in motion. For now keeping the stop vs breakeven and will look to add through 110 in time.
VRTX has a solid breakout through 350 in the beginning of summer and has since came back under the major breakout area. As it continues to set up for a sneak buy back through 350 it could be a nice to keep on the radar.
Terms and Conditions Trading Experts LLC (“Company”) is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or urgencies customers should buy or sell for themselves. The independent contractors and employees or affiliates of Company may hold positions in the stocks, or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company’s products (collectively, the “Information”) are provided for informational and educational purposes only and should not be construed as investment advice.