Pristine Market Analysis & Watchlist 3/1

Approaching the Climax...

Team,

Bond yields are ripping. And equities are hanging on by what feels like a thread. Let’s unpack today’s action.

-Andrew

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Economic Data:

Today’s ISM manufacturing data came in slightly below analyst estimates.

But at the end of the day, I believe today’s price action was a continuation of the wave of selling that began on February 2nd. Investors have come to the realization that the fed is going to have to keep interest rates higher for longer, and that is causing stress within our financial system.

Fed Fund Futures Making New Highs

Equity Dashboard

Market breadth was mixed with 45.8% advancers. Duration sensitive Nasdaq QQQ and ARKK led today’s declines as rates moved higher. But still no pop in volatility…

ES_F S&P 500 Price Action Analysis

The S&P 500 topped on Feb 2nd, and has been stair-stepping lower in a narrow channel ever since.

We are testing the 200-day SMA for the third time in the after hours session. This level is of the utmost importance, because there are plenty of trend-following investors that use it to determine if we are in a bull or bear market. Remember, the greater number of times a level is tested, the weaker the level becomes.

ES_F S&P 500 Daily Chart

Adding to the market weakness, TSLA is selling after hours following it’s investor day presentation. We’ve been pretty clear to premium subscribers that we believed the TSLA event would result in selling. See excerpt from last night’s letter below:

Beware the Jaws

The jaws setup is still here…does it take one giant leap toward closing tomorrow? As I write this letter to you, Nasdaq futures are falling.

Buckle up!

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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