Pristine Market Analysis & Watchlist 5/8

Defense Wins Championships

Team,

Playing good defense is less glorious than putting it all on the line in a blaze of glory…but defense wins championships!

-Andrew

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Economic Data

No big economic data releases to jolt the market into a directional move this morning. This is the calm before the Wednesday CPI storm.

Treasury Action

Fed Fund Futures

Fed fund futures continue to creep higher, however, the market is still pricing in TWO rate CUTS into year end! What has to happen between now and then for those cuts to come to fruition?

10Yr

Continued selling on the long end of the curve today ahead of CPI. Equities didn’t get the profit-taking memo.

Equity Dashboard

Or perhaps they did! Only 54.9% advancers in a relatively choppy tape. I spent most of the session off the screens to preserve mental capital.

ES_F S&P 500 Price Action Analysis

The S&P 500 is once again trading back above the 20-day SMA. The monthly value area is very thin for May, which means a large directional move is likely to kick off sooner rather than later. It’s important to not be fooled by how calm the market is right now. From stability comes instability.

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