Nasdaq What Now Episode 16

Who’s In The Nasdaq And What Are They Doing?

Two Traders: One increases size after a loss; the other gets smaller. Both continue to lose”..

That’s a very important Dr Brett’s quote. It reminded me of this week. Well, the Nasdaq100 kept falling lo of ranges—but at the end the bulls re-surfaced due to previous wicks left behind. On Monday, the market at 12545 (real bearish) I remember investors kept saying, “Buy the Dip”. In my head, I kept saying to myself, “as long as there’s a LOWER HIGH, keep selling”.. I took a sell and it turned out well. There’s one quote that resonates well with what keeps happening in the market and that’s: “Trade the trend until you’re wrong”. Simple yet really powerful because it just tells you that the market is always right no matter what you think or how unfair a certain trend is. The over-bought or over-sold thingy is basically just a myth to define one’s ignorance—I guess. People who say that a market is over-bought pretend to be from the future and lack market awareness. Anyway, the Nasdaq100 bears kept it a 💯. The market on Monday ended with a Bullish divergence and a higher-low and I remember just staying away and waiting to see what the bulls had coming. Tuesday the 10th, I remember the bulls hoped in after that BD (bullish divergence) and they just took us back to 12400. The back and forth after the EIA news release wasn’t worth it so I remember just staying away. Well, Tuesday wasn’t as bad till the market started acting confused as to where it intended going. A rather dramatic day was “Wednesday”. The bulls look like they had everything in control until the CPI and the Crude Oil Inventories release. The market dropped 500 points without even flinching.. Trust me, I didn’t see that one coming. Although there was an ascending triangle: I ignored. Hmm—making me once again say, “Every detail matters”.. Try not to ignore!

Thursday, A day of the PPI and Initial Jobless Claims. Thursday was just really a continuation for the said bears. I remember writing, “Don’t by the dip if you don’t understand the trend”.. That was a summary of Thursday. I took this 1:1 trade and the market really dropped to 11690 before going up on Friday and stayed bullish because there was unfinished business at 12500.

Yeah, lol, I know.. It actually went that far. Now this week, I mean the bulls are still lurking but we kind’a ended the week with a double top on the 15, an engulfed candle on the daily almost looking like some bearish unfished business, and the weekly has some naked wick chilling there. Wondering what the week will hold. I guess we’ll see. My plan still remains simple, “Trade the trend till I lose”, so, If we’re still bearish I trade those LHs and if the bulls return, I look for those HLs. Keeping it real simple as per usual. See you at the top reader!

Nasdaq100 High Impact News For 16th-20th Of May, 2022

Tuesday 17th May, 2022 by 3:30 GMT—The Core Retail Sales.. Core Retail Sales measures the change in the total value of sales at the retail level in the U.S., excluding automobiles. It is an important indicator of consumer spending and is also considered as a pace indicator for the U.S. economy. A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.

Also, same day; same time.. Is the Retail Sales. Retail Sales measure the change in the total value of sales at the retail level. It is the foremost indicator of consumer spending, which accounts for the majority of overall economic activity. A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.

Same day but by 19:00 GMT, The fed chair Powell will be speaking.. As head of the Fed, which controls short term interest rates, he has more influence over the U.S. dollar’s value than any other person. Traders closely watch his speeches as they are often used to drop hints regarding future monetary policy

Wednesday 18th May, 2022. By 13:30— We’ll be having the Building Permits. Building Permits measures the change in the number of new building permits issued by the government. Building permits are a key indicator of demand in the housing market. A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.

Same day; Different time (15:30 Gmt) is the Crude Oil Inventories.. The Energy Information Administration’s (EIA) Crude Oil Inventories measures the weekly change in the number of barrels of commercial crude oil held by US firms. The level of inventories influences the price of petroleum products, which can have an impact on inflation. If the increase in crude inventories is more than expected, it implies weaker demand and is bearish for crude prices. The same can be said if a decline in inventories is less than expected.
If the increase in crude is less than expected, it implies greater demand and is bullish for crude prices. The same can be said if a decline in inventories is more than expected.

Thursday 19th May, 2022 by 13:30 GMT is the Initial Jobless Claims.. Initial Jobless Claims measures the number of individuals who filed for unemployment insurance for the first time during the past week. This is the earliest U.S. economic data, but the market impact varies from week to week. A higher than expected reading should be taken as negative/bearish for the USD, while a lower than expected reading should be taken as positive/bullish for the USD.

Also by 13:30 GMT, is the Philadelphia Fed Manufacturing Index.. The Philadelphia Federal Reserve Manufacturing Index rates the relative level of general business conditions in Philadelphia. A level above zero on the index indicates improving conditions; below indicates worsening conditions. The data is compiled from a survey of about 250 manufacturers in the Philadelphia Federal Reserve district. A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.

Finally, still Thursday by 15:00 GMT is the Existing Home Sales.. Existing Home Sales measures the change in the annualized number of existing residential buildings that were sold during the previous month. This report helps to gauge the strength of the U.S. housing market and is a key indicator of overall economic strength. A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.

  All economic data are credited to investing.com


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