Back in the Saddle
Midweek Market Update June 28, 2023
The Rhythm
You may recall that I was away on vacation last week. My family and I had a relaxing trip to Pawley’s Island, South Carolina, where I stayed mostly unplugged and away from the markets. I believe time away is a critical component of healthy energy levels and perspective.
When I started catching up Sunday Morning with my Weekend Weekly Charts it was nice to learn that the market had given us an orderly pullback. So I met Monday morning with equal parts enthusiasm to buy the dip and caution about how much lower it could go.
Then I tempered that with a repeated reminder to take it slow and make sure I’m feeling back in rhythm before trying to do too much.
The Market
At the start of the week, the major indexes were all heading lower, searching for the next support level. By the close on Monday, and with a confirming move yesterday, it seems that support has been found at the 21-day MAs, at least for SPY and QQQ.
Today the major indexes have all traded on either side of their 8-day MAs. So the strength and momentum are still there and trying to resume.
The Charts
SPY traded near the 21-day MA and $431 pivot earlier in the week. Now its trying to stay above the 8-day MA to keep the bullish momentum. So far this is a healthy pullback that could easily add fuel to the next move higher. If the previously mentioned support levels can’t hold move back to the 50-day MA $420 and the $417 breakout level would be likely.
Disregard the misprinted long tail up on today’s candle.
QQQ has pulled back precisely from the $371 pivot and almost ticked the 21-day MA for the first time since May 5th. The strength continues, but this could easily go either way - to $354 below, or back to $371 above.
IWM is a leader today, staying well above the 8-day MA. A move back over $185-$186 would be very welcome.
DIA is still a slow mover, sticking close to both the 8 and 21-day MAs. This one still needs to get up and out of the box.
BTC Bitcoin continues its bullish consolidation as the 8-day MA catches up to the price. This needs to get over 31,290 to break out and confirm the move higher.
The Closing Bell
The rest and pullback are healthy and should lead to a resumption of the trend. Seasonal tendencies favor positive action for the next few weeks before leading to more flat-to-down action for the rest of the summer.
Patience.
The Disclosures
***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.
All investments are subject to the risk of loss, which you should consider in making any investment decisions. Readers of this article should consult with their financial advisors, attorneys, accountants, or other qualified investors prior to making any investment decision.
POSITION DISCLOSURE
June 28, 2023, 4:00 PM
Long: CROX0630P104, ENVX, MARA, MARA0721C15, SPY, QQQ
Short:
Options symbols are denoted as follows:
Ticker, Date, Call/Put, Strike Price
Example: VXX1218C30 = VXX 12/18 Call with a $30 strike
