🔥Indexes Rally On Powell🏦

Mar 03, 2022

The Indexes held major support levels on Fed Chairman Jerome Powell’s statements. Between rising oil prices, fed raises rates and the threat of increased aggression with Russia we rallied and held. This was a broad based rally. If you look at the top 10 sectors of SP500 you will see every single one was up today. Usually Powell throws cold water on the index but today that was not the case. Two key points were the rise of rates and the balance sheet. Powell made it clear that maybe we will only have a 25 basis point rise versus 50 basis points. Also the pairing down of the balance sheet was deemed to be aggressive. Now Powell is saying instead of 12 months , he stated the pairing down of the balance sheet could take 3 years. Both of these were good news for equities. The biggest data point before the March 12th meeting is the March 10th CPI data until then we have two weeks of Jobless claims data starting tomorrow. The estimates are at 226,000

Technically the bounce was solid we retested $342 several times and finally caught support after undercutting below $340. The undercut was not able to go lower which means short sellers lost the battle for position today. This leads us to look at $342 as major support. Other battle grounds that you should be looking for in your trades is the 50 day moving average. You will notice certain stocks that have beaten earnings are rallying right to that level and met by selling such as SNAP. Avoid those. Focus on the ones that are able to close over the 50 day moving average such as UPST. This is bullish and show institutional support. Key levels are on the charts. I am more bullish today then the day before. Let’s see what tomorrow brings. Let’s get to it! Watch tonight’s video it has three long ideas and two shorts as well as a walk through the $QQQ.

Let’s look at our Indexes

Let’s look at our stocks

Several stocks are setting up nicely and will be added shortly.

Subscribe to You Tube! 👈Subscribe and turn on notifications. There is a new daily video after the market Monday through Thursday! It’s called the Top 5 in 5. It consists of the best five ideas for the next day and I condense it into 5 minutes. It’s loaded with actionable ideas. It’s worth your time. It is hyper specific and actionable. Tonight’s includes 4 Longs and 1 Short with entries and stops marked. When you subscribe turn on ALL notifications so you are notified of the daily Premarket live shows ,Top 10 Weekly Buy List and educational videos. Also, Once subscribed you will receive private content on YouTube make sure all notifications are turned on so you receive it. The video below is the Top 5 from tonight and focused on actionable ideas based upon the indexes and earnings tonight. Pay close attention to what is said about $SNOW.

As always all investment decisions need to be made by the individual. We all have different risk profiles. No two people trade the same. Understand the buy points, stop losses, trims are suggestions. You need to develop your own process. I am willing to help. If you have questions email me Arete@Aretetrading.net. For example, to stop losses, I like to see them close. That does not mean that fits everyone’s risk profile.

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