Pristine Market Analysis & Watchlist 3/6
It All Comes Down to Powell...
Team,
Powell testifies tomorrow! Let’s discuss today’s price action and how the market is setting up into the event.
-Andrew
Economic Data:
Today’s session kicked off with factory orders that came in negative, but better than the consensus estimates!
ZN_F 10yr treasury futures tested the monthly point of control before finding sellers.
Beware the Jaws
Leaving the jaws setup between Nasdaq QQQ and ZN_F 10yr futures as wide as ever! Duration sensitive equities and bonds continue to exist in two alternate realities.
Equity Dashboard
The powerful two-day equity rally we experienced at the end of last week fizzled out. All indices closed toward the low end of their respective daily ranges, and the small caps experienced a significant selloff. The IWM small caps and QQQ Nasdaq have a 90-day correlation of ~.79, so a divergence of this magnitude is incredibly odd.
Return on Vol Crush
Equity volatility has been absolutely crushed over the past few weeks
ES_F S&P 500 Price Action Analysis
The ES S&P 500 traded inside the monthly value area and above the 20-day SMA intraday before falling back below both levels into the close. Powell is queued up to either push us through resistance, or send us back to the recent lows!
Let’s discuss the game plan into tomorrow’s session!
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
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