The Markets
With markets closed tomorrow for Good Friday, today marks the end of the week, the month, and the first quarter of 2024.
Stocks are off to a great start this year - SPY and QQQ are each up more than 10%. Strength leads to strength. Bullish data keeps producing more bullish data.
April is traditionally a strong month and tends to be even stronger when first-quarter performance has been exceptional. However, it is also the last of the ‘strongest six months’ of the year—a notable seasonal tendency.
As always, there could be a summer slowdown coming. So far, every reason for a pullback, every opportunity for a dip, and every economic data point sure to incite selling has been quickly refuted.
Bullish trends tend to persist.
The Charts
SPY continues to drift higher above the 8-day MA.
QQQ has spent the week just under the closing high—$446.38—while the 8 and 21-day MAs rise underneath.
IWM made good progress higher this week before finding resistance near the $212.25 pivot today. That level dates back two years to March 29, 2022.
It's not the strongest candle for the day, but we have gotten used to much back-and-forth with small caps.
DIA spent a few days digesting the breakout move before returning to new highs. It closed one penny higher today than it did one week ago.
TLT Bonds continue in the range.
DXY The dollar moved higher this week without holding stocks down. The recently inverse relationship continues to evolve.
BTCUSD keeps going with continued consolidation. New highs should be coming again soon if the strength is going to stick around.
The Trade
It's been a quiet week with Easter approaching and the first quarter winding down.
The calm could disappear quickly, though. The latest PCE data will be released tomorrow while the markets are closed. Any surprises could have a magnified effect next week since market participants won't be able to react immediately.
We'll see what happens Monday morning.
In the meantime, enjoy your weekend and make some time to look at the Weekly/Monthly/Quarterly Charts. They’ll be out Saturday morning on X.
Don't miss them.
Have a great weekend and a blessed Easter.
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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 (T3 is 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 opinion 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
March 28, 2024, 4:00 PM
Long: ANF0419P120, IMNM, IWM, IWM0419C215, LABU, QQQ0405P445, VKTX0419C80, XBI0419C97.50
Short:
Options symbols are denoted as follows:
Ticker, Date, Call/Put, Strike Price
Example: VXX1218C30 = VXX 12/18 Call with a $30 strike