Pristine Market Analysis & Watchlist 9/18

No Man's Land!

Team,

The market is chopping into Fed Wednesday. Let’s take a look at the pockets of strength and weakness under the hood, and discuss a new name we are adding to the watchlist!

-Andrew

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Economic Data

NAHB housing market index came in at a 5 month low this morning.

FX Market

The dollar index pulled back…to the 5-day EMA. There is no raging bull market in risk assets when the dollar index is in such a strong uptrend.

Bonds

The probability of a November rate hike increased from 27.1% to 36.4%. Fed meeting incoming this Wednesday.

Long-term US treasuries continue to consolidate at their YTD lows.

Equity Dashboard

The headline index SPY is holding up, but under the surface the breadth is weak. Today’s session finished with only 33.8% advancers, creating a challenging tape for the active trader.

The Nasdaq QQQ outperformance vs IWM Small caps we are seeing is unprecedented.

Equity Index MTD September Performance

The indices have largely chopped sideways in September.

Index Price Cycle Monitor

ES S&P 500 - Testing 20 day SMA and below monthly point of control

NQ Nasdaq - Testing 20 day SMA and above monthly point of control

RTY Russell 2000 - Testing 200 day SMA and below monthly point of control

YM Dow Jones - Testing 50 day SMA and below monthly point of control

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