The Markets
There is a lot going on in the markets today as the sound of war drums stoked selling activity. We’ll skip the commentary and go right to the charts.
The Charts
SPY lost -1.42% today, closing below the 50-day MA once again. The daily chart is showing potential for a bear flag pattern that, if confirmed, would have a measured move price target landing near pivot support/resistance at $524 to $527.
QQQ moved lower by -2.42% today landing on the AVWAP from the April low after grazing the 100-day moving average.
IWM moved all the way down to the 21-day moving average, giving up -3.25% on the day. A downward move like this coming after the failed breakout yesterday is cause for concern in the near term. The next potential support level comes in at the $211.88 pivot.
DIA likewise touched its 21-day MA after many days of climbing steadily higher. $399 to $401 has been a significant price area for many months. We’ll see if it gets tested and, if so, whether or not it can provide support.
TLT was the one positive note today, rising half a percent while breaking out above the $94.84 pivot. $96.40 is the next test above.
DXY $DX1! US Dollar futures gained as well, but so far haven’t been able to get over the many layers of resistance near today’s closing price.
BTCUSD Bitcoin suffered as well, but at the time of this writing has managed a substantial rally, nearly recapturing all of the day’s losses.
The Trade
It’s a bit of a shakeup.
Middle East tensions often serve as a source of anxiety in the markets as traders and investors assess the likelihood of US involvement.
Stocks are still correcting and providing dip buying opportunities for the agile. For longer-term traders or investors, the lower prices may be getting more attractive. However, for everyone, this is a time for the most diligent trade planning and exceptional risk management.
Know the potential support levels and the attractive buy points, and be ready to see if strength shows up in those areas.
We don’t have to buy the dips. We can buy the strength after the dips.
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The Disclosures
***This is NOT financial advice. This is 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”), an SEC-registered broker/dealer and member of FINRA/SIPC. All trades placed by Mr. Moss are done through T3TG.
Statements in this article represent that person’s opinions only and do not necessarily reflect those of T3TG or any other person associated with T3TG.
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 consider this 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 before making any investment decision.
POSITION DISCLOSURE
August 1, 2024, 4:00 PM
Long: IWM0805C230
Short:
Options symbols are denoted as follows:
Ticker, Date, Call/Put, Strike Price
Example: VXX1218C30 = VXX 12/18 Call with a $30 strike