Trade Plan for 10/10-10/14

Bonds...Live and Let Die

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Last week I was 4🍸 confidence level bullish for metals and gold miners because of the relative strength from the week before and the sector made significant gains before bouncing down from resistance, closing green for the week with silver leading the charge. 💰 

I was bullish biased for the week and the indices reacted well to my levels.  $ES/S&P 500 futures got to within 2 points of my 3822 resistance (high of the week was 3820🎯) before a precipitous drop in the latter part of the week, but still made upward progress on the week.

I was bullish biased on oil for the week, but decided to attempt a short midweek against strong momentum🙄 and have moved that position to an options play to control risk.

This week @SLMacro looks at bonds and their place in a changing economic outlook for 2023.

Summary of Market Action Last Week:

• $ES/S&P 500 Futures and $NQ/Nasdaq futures continued downward momentum from the prior week making a lower low on the Sunday night open, but then saw 2 incredibly green days on Monday and Tuesday.  The voracious buying paused midweek and gains were given back, but the week still ended green.   $RTY/Small caps futures followed a similar trajectory, but held it’s low on Sunday and then made the most progress week over week. 

• $SI/silver futures lead the precious metals, but $GC/gold futures still look strong on the month and $GDX (gold miners) closed the week green in line with indices performance.  

• $CL/Crude Oil futures gapped up on the Sunday open and continued upwards with blistering momentum with only slight pullbacks closing near the highs. $XOP/oil equities demonstrated extreme relative strength against the market with an impressive gain.

Here’s how the week closed out:

For the week ahead (10/10 - 10/14/22)