Pristine Market Analysis & Watchlist 10/9

Investors Buy the Dip!

Team,

The Hamas attack on Israel is a human tragedy (thoughts and prayers to all those impacted), but is it a market tragedy? Let’s take a look under the hood!

-Andrew

---

News/Economic Data

Israel conflict is being widely covered by financial media/talking heads. As far as we are concerned as traders and investors, geopolitical risk is higher today than it was heading into the weekend. That is the only conclusion we can draw.

Financial assets sold off in early trade, but markets reversed on the following comments:

FX Market

The Dollar index is testing the bottom of the bullish trend channel. A weaker dollar is BULLISH for risk assets.

Long-Term Treasuries

What is this strange color on the weekly candle for long-term treasuries? 😎Strong treasuries is BULLISH for risk assets.

Energy

Crude oil bounced hard on the Israel attack news. High energy prices is a headwind for risk assets. Fortunately, this did not derail the equity dip buyers today.

Equity Dashboard

Market breadth opened the session weak and strengthened throughout the session 💪

Equity Index October Performance

Indices are mixed for the month of October!

Index Price Cycle Monitor

ES S&P 500 - Testing 20-day SMA & bottom of monthly value area

NQ Nasdaq - Above 20-day SMA & inside monthly value area

RTY Russell 2000 - Below 20-day SMA & inside monthly value area

YM Dow Jones - Below 20-day SMA and inside monthly value area

In the following sections of tonight’s update, I’ll cover my research in preparation for tomorrow’s trading session

✅ Trend Model Update - Our proprietary indicator that informs us on how aggressive/defensive to position in the market

✅Market Strategy - My trading plan

✅ Today’s Trade Blotter and Position Update

✅Daily Watchlist - We scan thousands of stocks and hand-pick the best reward/risk opportunities