Pristine Market Analysis & Watchlist 10/5

Strength Beneath The Surface!

Team,

There is an old market saying that goes ”They’ll either scare you out, or they’ll wear you out!”. Don’t let the market wear you out Team. Focus on what you can control, and keep fighting the good fight 👊

-Andrew

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Economic Data

Today’s session kicked off with initial jobless claims data that was roughly in-line with expectations.

FX Market

The dollar index put in another red candle and is now testing the 10-day EMA. A weaker dollar equates to looser financial conditions, and looser financial conditions is positive for risk assets!

Long-Term Treasuries

The charts for long-term treasuries still look rough, but ZN is developing a weekly hammer candle, which is a step in the right direction.

Energy

Crude oil continues to cascade lower! Lower energy means lower future inflation, which is positive for risk assets.

Equity Dashboard

US equity indices were mixed and 50.8% of stocks advanced…but check out the closing ranges on the indices! A high range percentage means that the index finished toward the high of the day. Another positive undercurrent.

Equity Index October Performance

The Nasdaq QQQ is the only green index for October.

Index Price Cycle Monitor

ES S&P 500 - Below key moving averages and below monthly value area

NQ Nasdaq - Below key moving averages and retesting monthly value area

RTY Russell 2000 - Below key moving averages and below monthly value area

YM Dow Jones - Below key moving averages and below 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