Trade Plan 2/6-2/10
Tip toe through the tulips
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Last week I maintained a bullish bias for the market once again with an increased confidence level. Monday was a significant down day and then price action ripped into midweek, so my strategy of fading the initial move turned out to be a good one. ✅
I was low confidence bullish bias for precious metals this week, and it seemed as if silver might resolve its consolidation to the upside, but it was unable to hold after what has been an impressive run for the metals. We saw what I’d outlined for what bulls didn’t want to see which was a spike above the key levels and then a decline.
I increased my bearish bias confidence for oil (as I’d highlighted my long NQ/short oil pair trade just over a week ago publicly on Benzinga) and that was my big winner this week. ✅💰🏆
This week @SLMacro looks at the recent run-up and reconfirms his longer term outlook.
Summary of Market Action Last Week:
After a red start to the week, the indices rallied impressively midweek before a pullback Friday. $RTY/small cap futures led the momentum.
$GC/gold futures gapped up and rallied early/mid week, before punishing price action on Thursday and Friday. Similarly $SI/silver futures broke out above my triangle, but could not hold and presented with a bearish false breakout. $GDX/gold miners declined substantially with the metals.
$CL/Crude Oil futures and $XOP/oil equities bled out this week closing near the lows.
Here’s how last week closed out:
For the week ahead (2/6-2/10/23)