Rotation, Rotation, Rotation
Rotation, Rotation, Rotation
Weekend Market Update June 9, 2023
The Markets
Not much has changed since Wednesday. Stocks are still strong and getting stronger.
The Bullish Percents Indexes for the NYSE, SPX, and Nasdaq Composite have all reversed into columns of X’s showing more strength and participation.
The percentage of SP 500 stocks above their 20, 50, and 200-day moving averages is above the midline and pointing higher.
BUT, the possibility of a pullback is still very real. See the most recent Midweek Market Update for details. Seasonal tendencies and cycle analysis are showing the potential for some weakness moving into late June and onto July.
So while many things look ripe to buy, it makes sense to remain patient and look for the right opportunities and better reward/risk setups.
About
Before going to the charts, an update to the About Me section. Trust and transparency are paramount. And you will likely get more benefit from my writing if you have some context and an idea of where I’m coming from. I shared this on Twitter recently the response was favorable. So I thought it would be a good idea to include it here.
I am a professional trader and an associated member of T3 Trading Group, an SEC-registered broker/dealer, and member of FINRA/SIPC. All of my trades are done through T3TG.
Nothing I post here (or anywhere else) should ever be taken as advice or a recommendation to buy or sell.
The way I trade may not be the way you should trade. We all must develop a system that fits our personalities, plays to our strengths, and minimizes our weaknesses. I've drawn on many sources to learn and develop as a trader. You should too.
My goal here is to better myself as a trader and to help others do the same.
Absorb what is useful to you and discard the rest.
During the trading day, I am active in T3 Live's Inner Circle Virtual Trading Floor (VTF) with David Prince, Rick March, and Kira Turner. It is a beautiful, vibrant community of experienced and helpful traders. If you are still looking for ‘your people’ this is a great place to try. Learn more by visiting t3live.com/ic.
Often the charts I post on Twitter (with the dark background and IC logo) are names that we are watching and discussing. Sometimes members of the VTF are actively trading those names. Sometimes they're not. Sometimes I am involved in the names. Sometimes I'm not.
This page, Trading-Adventures.com is my personal webpage where I publish a twice-weekly market review, like you’re reading now, and occasional educational articles. In addition to that schedule, every Saturday morning I review a collection of weekly charts (light background with the T-A logo) on Twitter.
If you’re not following there, you should be. And if you came here from Twitter, but haven’t subscribed, consider it. It’s free. And by reading in both places you’ll have a better, more timely feel for what I’m thinking, seeing, and doing.
I hope the charts and observations I share can be helpful to you. But again, my way will not be your way. Please do not look for "hot tips.” These thoughts and ideas are only one small part of my overall trading plan.
Thoughts and ideas are good. But they are only the start. There are many other important components of a trading plan that must be considered before any action can be taken. Such as:
Position sizing
Time frame
Risk tolerance
Price objectives
... just to name a few.
If you need help with any of those things, visit The Inner Circle webpage. T3 Live has the resources you need to learn and improve.
Successful traders take ownership. There is no room for blame and excuses.
You have to do the work yourself.
You have to learn from your losses.
And you have to manage risk so that no single losing trade, or losing streak, knocks you out of the game.
There are so many fantastic resources available. But they must be used properly. I've learned so much from so many people through writing on this page, Twitter, and the T3 Live VTFs. I've made some great friendships and lasting connections.
Thank you all for being here, and for reading, sharing, commenting, etc.
The Charts
SPY touched the August pivot high before coming back to the daily opening level. Not a great-looking daily candle. But holding the 8-day MA and the upper end of the weekly range shows that bullish momentum is still in place.
QQQ has a similar reversal today. And after a brief dip below the 8-day MA to resolve the extension, this upper-level consolidation still looks bullish.
IWM is trading around the March 2020 low anchored VWAP and a 61.8% Fibonacci retracement level. Again, a bullish consolidation pattern.
DIA is still moving higher, above the key moving averages, and pushing the Bollinger Bands up.
The Closing Bell
Next week only the Midweek Market Update will be published. And there won’t be an article the following week as I will be traveling on vacation with my family.
I will have occasional updates on Twitter. And there will be Weekly Charts there tomorrow morning.
Thanks again for all the wonderful things you do. Reading, sharing, subscribing, sending nice comments, etc. It truly makes this fun and fulfilling.
Have a great weekend!
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 9, 2023, 4:00 PM
Long: ENVX, UVIX
Short:
Options symbols are denoted as follows:
Ticker, Date, Call/Put, Strike Price
Example: VXX1218C30 = VXX 12/18 Call with a $30 strike