Nasdaq What Now Episode 17

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

I believe that a key to successful trading is learning how to become comfortable with taking a loss. We know that markets, while not perfectly efficient, are largely so; complete predictability is never going to be attained by mortal traders. That makes trading a bit like hitting in baseball, where one can achieve a high degree of expertise, even while making frequent outs.
Losing traders often bring a measure of perfectionism to their work. They equate a good trading day with a profitable day. No, no, no! A good trading day is one in which you have followed your well-researched plan with focus and discipline. Good trading days, over time, will generate profits. But the uncertainty of the markets means that even the best laid trading plans can go awry. In the short-run, you cannot control your profitability. You can control whether or not you have good trading days, which will generate profits over the long haul—if you have adequately researched your strategies..

The Nasdaq100 this week was packed with opportunities. I mean large-seized opportunities. Thanks to Wednesday and Friday.. This is how it all happened.

Monday, we had no news and I remember the market closed bullish at 12447. That was a 9-11th May, 2022 resistance. So, the bears trooped in afterwards. after triple top that formed. Taking the Nasdaq100 from 12447 to 12240. All these happened at 2am-4am GMT +1 causing most to miss out on the move. Not log before the bulls kicked in making the Nas100 a little mixed. The Monday in Nasdaq100 ended up mix with market creating a ascending triangle. Leaving speculations as to whether the bears were coming back in or not.

Tuesday the 17th, The Nasdaq100 bulls came in. Yet another failed pattern and reason not to trust the patterns the market forms but rather, sticking with the structures. It rose to 12539 and immediately after the Fed Chair Powell spoke, It went up further to 12578. Wednesday, Bloody Wednesday. To my knowledge the market’s volatility on Wednesday is usually one to anticipate. The bears started building on Wednesday  trying to cover up their tracks. All the signals for Wednesday was enough to brig in the bears. The Head and shoulder, bearish divergence, double top, ascending triangle.. Lot of signs.. Guess what, the drop was insane. The market fell from 12578 to 11947. That’s close to 631 points. The irony of Wednesday is, the fundamentals turned out positive but we got a bearish reaction.

Thursday, was just a continuation but a little bit mixed. Market opened bearish but the bulls came in after the bullish divergence. To 11972.. Finally, Friday the 20th of May, 2022. The bears came in to finish up what the Wednesday started. Taking the market down to 11489. That’s how my week went. How was yours?

My plan for this week is simple as usual. Wait for them Lower-highs to sell and Higher-lows to buy. What should we expect this week? “With U.S. stocks on the threshold of a bear market investors will be looking to Wednesday’s Federal Reserve meeting minutes for more insights on the central bank’s policy response to soaring inflation. Retail earnings will be in the spotlight after disappointing results from major retailers last week rattled markets already hard hit by worries over inflation, rising interest rates, geopolitical uncertainty stemming from the war in Ukraine and the prospect of recession. U.S. data on personal income and spending – which contains the Fed’s favored measure of inflation – will be the highlight of the economic calendar, while PMI data out of the Eurozone and UK will also be closely watched. Here’s what you need to know to start your week”.. More reading from – here

Nasdaq100 High Impact News For 23rd-27th Of May, 2022

Tuesday, May 24, 2022 (15:00) – “New Home Sales” measures the annualized number of new single-family homes that were sold during the previous month. This report tends to have more impact when it’s released ahead of Existing Home Sales because the reports are tightly correlated. 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.

Wednesday, May 25, 2022 (13:30) – “Core Durable Goods Orders’ measures the change in the total value of new orders for long lasting manufactured goods, excluding transportation items. Because aircraft orders are very volatile, the core number gives a better gauge of ordering trends. A higher reading indicates increased manufacturing 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.

(15:30) – 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.

(19:00) – “The Federal Open Market Committee (FOMC) Meeting Minutes” are a detailed record of the committee’s policy-setting meeting held about two weeks earlier. The minutes offer detailed insights regarding the FOMC’s stance on monetary policy, so currency traders carefully examine them for clues regarding the outcome of future interest rate decisions.

Thursday, May 26, 2022 (13:30) – “Gross Domestic Product (GDP)” measures the annualized change in the inflation-adjusted value of all goods and services produced by the economy. It is the broadest measure of economic activity and the primary indicator of the economy’s health.
Usual Effect: Actual > Forecast = Good for currency
Frequency: Released monthly. There are 3 versions of GDP released a month apart – Advance, second release and Final. Both the advance the second release are tagged as preliminary in the economic calendar.

(13:30) – “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.

(15:00) – The National Association of Realtors (NAR) “Pending Home Sales Report” measures the change in the number of homes under contract to be sold but still awaiting the closing transaction, excluding new construction. 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


All Rights Reserved: commercial and non-commercial entities must contact the site owner for permission to use extracts from this blog and acknowledge the copyright and full attribution at all times. Never Miss The Lljournal Article!
Become A Master Trader—“Book Lazyluchi”…Want To Know The Next Episode?
Tune in to get exposed to my trading journey: personal backstories, experiences, observations, strategies, lessons, struggles, and victories.
Hit the—“Subscribe!” BUTTON.
Cheers,


Leave a Reply

Your email address will not be published.