2/27/22 – Sunday Stock Talk Write Up
What does the market have in store for us this upcoming week? What are the important support & resistance levels to be aware of? Read the Sunday Stock Talk Write Up to find out.
Kooky, Wacky, Crazy Markets
There are going to be some unhappy traders tomorrow morning at the bell. I was waiting for the 6pm EST futures open in order to start writing, because I was expecting either a nothing open that would have me looking bullish on a pullback early on in the week, or a big move lower which would have me thinking we potentially ‘crash’ early on in the week. The latter happened and ES opened down about 100 points and is looking pretty weak. If you did some homework over the weekend and peaked at the weekly chart then you would notice a nice green hammer with a BIG bottoming tail. This would normally be bullish, and with back to back 100+ point rallies in the ES on Thursday & Friday I have to imagine the number of people who let out a sigh and said “The bottom is in.” was just about every trader. Now remember this is after Thursday morning where the entire world was looking at the markets to completely fall apart. I say all of this to say that “Cash Is A Position.”
Since we are talking about quotes here then I will drop another one that will be an absolute fact this week.
“Less Is More”
With the ranges we are getting in the markets it only takes 1 good trade to make an entire week. A ‘normal’ trade that could be good for 10+ points is now capable of moving 50+ points. That is also a double edge sword which means your stops are a bit bigger and waiting for 2nd entries after a move is confirmed will take some serious patience and to keep your FOMO in check.
As for levels on the week we don’t have anything between here and 4166.75. If we can develop an intraday downtrend on Monday then that level is possible to be tested. However if no trend develops then I could see us stalling out and putting in a 50 point range day that really goes nowhere.
I want to put together a stock watchlist for the week, but outside of the earnings on schedule everything is going to be weak with a 2-3% gap down on Monday morning.
The most important thing I think I can write for this week has already been said with the 2 quotes above, and it’s now just a matter of letting this market paint a picture for us on direction.
Have a great trading week!