Pristine Market Analysis & Watchlist 5/3

Powell Priority Check

Team,

Powell revealed that the strike price of the fed put is lower than we thought…and PACW went belly up! Let’s dive in.

-Andrew

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Economic Data

Today’s session kicked off with ISM Services data that came in slightly above estimates:

The services sector is still in expansionary territory, but is not booming quite as much as it was in January and February.

Fed Pause

The fed raised rates by 25 bps and signaled that it may in fact be their last rate hike

Powell Says Conditions In Banking Sector Have Broadly Improved; U.S. Banking System Is Sound And Resilient; Committed To Learning Right Lessons

PACW Bites the Dust

Shortly after Powell assured us that the banking system is sound and resilient…

The stock closed today’s session at $6.42, and is now trading down to $3.05 after hours!

Treasury Action

Fed fund futures turned lower after the PACW news hit the tape. The market is pricing in future rate cuts!

TLT Long-term Treasury Bonds continued their advance ☟

Equity Dashboard

Equities traded higher in the lead-up to the fed meeting, but sold off into the close!

Energy XLE and Financials XLF continued to lead the downside.

ES_F S&P 500 Price Action Analysis

The S&P 500 cascaded below the monthly value area. This price action is incredibly sloppy, and the risk of continued downside should not be taken lightly.

Let’s dig a bit deeper under the hood and analyze the risk/reward into the Fed meeting. If you haven’t upgraded your membership yet, what are you waiting for?

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