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8/5/2022 Weekly Market Review
Welcome to this week's edition of the Weekend Market Review. There are a lot of new subscribers this week, so a big thanks to those of you who are sharing my work! And welcome again to all the new readers!
It was a mostly up week in the markets as these changing trends continued. The general opinion seemed to focus on the possibility of the Fed slowing the pace of rate increases.
That changed Friday morning as the jobs report showing very low unemployment put a dampener on things.
Good news is bad news again?
The interpretation is that the Fed will have to continue to raise rates aggressively. After the open most things staged a massive morning rally taking prices back near resistance before heading down to make new lows for the day. Choppy, range-bound action, which isn't a terrible thing to see after the multi-week move higher.
The bull case from here would be another day or two of price consolidation just below these resistance levels followed by a break higher sometime next week.
The bear case is a move below the 8-day EMA. This could lead to lower prices pretty quickly as things are a bit extended here.
SPY 0.00%↑ pause at 417 resistance
QQQ 0.00%↑ in a bit of a wider zone between 315-330
IWM 0.00%↑ almost touched 190.94 resistance before heading lower.
The US Dollar is bumping into this support/resistance line with no real clear direction yet.
I'll share a look at some weekly charts on Twitter tomorrow.
And in case you missed them, here are some thoughts I shared over there throughout the week.
This chart caught some eyes— Many stock charts look similar to this suggesting the possibility of a move out of Stage 4 decline and into Stage 1 accumulation.
The familiarity comes from Brian Shannon’s chart on Understanding Market Structure
Trading systems don’t need to be complicated
Some things never change
Some things I’ve been Reading, Watching, and Listening to:
Edward Thorp on the Tim Ferriss Show
Ed Thorp was on the Tim Ferriss show recently sharing some thoughts and stories. He is truly a fascinating guy and a brilliant thinker. He's written books on blackjack “Beat the Dealer,” and investing “Beat the Market: A Scientific Stock Market System,” developed the first wearable computer, and been a very successful hedge fund manager.
The books listed are worth the time. If you want a preview or a condensed version of his story this is a great interview.
Tom Canfield on the TraderLion Trading Conference
Tom Canfield is a full-time independent trader and CEO of BeDumbFollowPrice.com. His stories of trading success, struggle, and perseverance are a "must listen" for active traders. In this conversation with Richard Moglen of TraderLion Tom shares candid views of what life as a trader is really like.
Walter Deemer - There are no atheists in a bear market
Walter Deemer is always good for a solid technical opinion on the markets and a good chuckle to go along with it. His book “When the Time Comes To Buy, You Won’t Want To: Timeless Pieces of Wit and Wisdom Compiled by a Wall Street Legend” is a compendium of his clever Wall Street sayings.
Some gems from this interview conducted by George Noble:
Ours is not to reason why, Ours is just to sell or buy
When the time comes to buy, you won't want to.
If you want to watch CNBC like the pros, turn the sound off.
Just when you find the key to the stock market some SOB comes along and changes the locks.
Walter is also a founding member and past president of the Chartered Market Technicians Association, former head of Putnam Investments' Market Analysis Department, founder of Deemer Technical Research Inc., author of several other books, and a fantastic Twitter follow.
That’s it for now. Thanks for reading this week’s Trading Adventures market review. Let me know what you think by clicking the button ☝
Your readership, subscriptions, and shares are truly appreciated.
I’ll be on Twitter over the weekend with some weekly charts.
See you there.
***This is NOT financial advice. NOT a recommendation to buy, sell, or trade any security. The content presented here is intended for educational purposes only.
Andrew Moss is an associated member of T3 Trading Group, LLC (“T3TG”) a SEC registered broker/dealer and member of FINRA/SIPC. All trades placed by Mr. Moss are done through T3TG.
Statements in this article represent the opinions of that person only and do not necessarily reflect the opinions of T3TG or any other person associated with T3TG.
It is possible that Mr. Moss may hold an investment position (or may be contemplating holding an investment position) that is inconsistent with the information provided or the opinion being expressed. This may reflect the financial or other circumstances of the individual or it may reflect some other consideration. Readers of this article should take this into account when evaluating the information provided or the opinions being expressed.
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