Short Week, But Not Short On Action
Short Week, But Not Short On Action
Market Update September 7, 2023
We’re back today after missing Monday due to the Labor Day stock market closure. Let’s get right to the action.
The Markets
Last Friday’s reversal action has led to continued selling in stocks during this holiday-shortened week. This has taken place as the Dollar continues its advance and is at new highs for the summer.
Since our last look at the daily charts here (Slow Down Summer), SPY did move higher through trendline resistance, recapturing the upside of the key moving averages. Now, nearly a week’s worth of selling had prices open this morning back where the advance started last Tuesday.
Seeing gains erased so quickly and completely isn’t bullish price action. However, we did see a bounce right on queue, at the important $444 level yesterday; the June pivot high, and the 21-day MA.
This afternoon we remain above that level and it’s possible that this will turn out to be simply a retest that short-term breakout.
Let’s go to the charts.
The Charts
SPY bounced at a critical short-term level yesterday and has been able to recapture that level today after opening lower. And this has taken place in the face of some bad news around AAPL and META.
If this reversal holds bulls will want to see SPY over 453.67 pretty quickly. If it doesn’t hold then a move toward $443; the 8/18 pivot low and the 100-day MA, looks likely.
QQQ is fighting its way higher and trying to deal with the 50-day MA. The roadmap is the same here. It needs to get back north of $380.83 to confirm the trend higher. If not, a move back to $354-$357 will be in view.
IWM continues to be the uglier index as it tests the 100-day MA with the 200-day MA also close by. Below that, there is a lot more room for selling.
DIA The Dow 30 hasn’t given up yet and is still trying to prevent a failed breakout.
TLT is choppy as most of the recent gains are gone. Yields continue to be a point of contention.
DXY is the real headwind. After turning back briefly at resistance, the Dollar has resumed its rally to put in a new recent high.
The Closing Bell
It continues to be a ‘less is more’ environment. Choppy, erratic action can frustrate even the most patient traders.
For now, it still makes sense to mostly watch and wait.
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
September 7, 2023, 4:00 PM
Long: CVX, ORCL, QQQ, SPY
Short: PENN
Options symbols are denoted as follows:
Ticker, Date, Call/Put, Strike Price
Example: VXX1218C30 = VXX 12/18 Call with a $30 strike