The Indexes traded up all day with lots of volatility on several pieces of information. First , China issued a statement that they will bolster up their economy through stimulus. This led to massive short squeeze in names such as BABA , FXI and BIDU. These stocks were heavily shorted and any dip was covered. To put it in perspective BIDU was up over 20% today. Second, talks between Russia and Ukraine are making progress. It looks like one step forward but tow steps back as the day progressed. Hopefully, this ends soon and there were some glimmers of hope. Third, we had the Fed finally hike interest rates 25 basis points which initially sent the market down. This reversed at 2:30 when Powell laid out his plan on making sure we are stable and the economy can handle the hikes. While his words worked, if it is not delivered in the future, it could mean equities selling down again. It’s good to be optimistic but being honest about inflation and how 25 basis points will do literally nothing to curb it would have been refreshing. For now we play the hand we are dealt. A market with money flowing into beaten down names. Specifically tech names with large capitalization. GOOGL, AMZN, NVDA all had massive inflows today. Institutions are putting money to work in equities and they want to make sure they are liquid. They do this in case they are wrong and need to sell right away. The QQQ was most impressive up 3.71% on the day. It closed over the 21 day moving average which we have done only one other time this year on February 9th. While we are not out of the woods this was a great start. It will take weeks to confirm if the bottom is truly in but today’s action was promising. Support and Resistance levels work best in markets such as this. Note them marked off on the charts below. Tonight’s video below gives 5 new Buy ideas for tomorrow and in depth coverage of the indexes and 10 year Treasury. Let’s get to it!
đŸ”¥Bullish Action on the Fed Hike...
đŸ”¥Bullish Action on the Fed Hike...
đŸ”¥Bullish Action on the Fed Hike...
The Indexes traded up all day with lots of volatility on several pieces of information. First , China issued a statement that they will bolster up their economy through stimulus. This led to massive short squeeze in names such as BABA , FXI and BIDU. These stocks were heavily shorted and any dip was covered. To put it in perspective BIDU was up over 20% today. Second, talks between Russia and Ukraine are making progress. It looks like one step forward but tow steps back as the day progressed. Hopefully, this ends soon and there were some glimmers of hope. Third, we had the Fed finally hike interest rates 25 basis points which initially sent the market down. This reversed at 2:30 when Powell laid out his plan on making sure we are stable and the economy can handle the hikes. While his words worked, if it is not delivered in the future, it could mean equities selling down again. It’s good to be optimistic but being honest about inflation and how 25 basis points will do literally nothing to curb it would have been refreshing. For now we play the hand we are dealt. A market with money flowing into beaten down names. Specifically tech names with large capitalization. GOOGL, AMZN, NVDA all had massive inflows today. Institutions are putting money to work in equities and they want to make sure they are liquid. They do this in case they are wrong and need to sell right away. The QQQ was most impressive up 3.71% on the day. It closed over the 21 day moving average which we have done only one other time this year on February 9th. While we are not out of the woods this was a great start. It will take weeks to confirm if the bottom is truly in but today’s action was promising. Support and Resistance levels work best in markets such as this. Note them marked off on the charts below. Tonight’s video below gives 5 new Buy ideas for tomorrow and in depth coverage of the indexes and 10 year Treasury. Let’s get to it!