Trade Plan for 10/17-10/21

Shop on the drop? - A shopping list of favorites

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Last week I took a ‘directionally neutral’ approach using my pivots as scalping guides because of the volatility events packed into Wednesday thru Friday.  I indicated that the most important level to watch for the week was 3590.50, which was both my pivot and the 200MA and we ended up closing right on it. Ultimately the directionally neutral stance for markets turned out to be the way to go, because both $ES/S&P 500 Futures and $RTY/Small caps ended the week with doji or indecision candles.

This week in addition to the usual data releases this week we have some important earnings to watch out for:

Also this week, @SLMacro shares his shopping list.

Summary of Market Action Last Week:

• $ES/S&P 500 Futures, $NQ/Nasdaq futures and $RTY/Small caps futures were choppy and volatile. The indices bounced back impressively from a CPI plunge on Thursday morning and then ended with a Friday downward trend day to close the week red. 

• Precious metals also bounced back from the depths on Thursday, but then had a punishing day on Friday. $SI/silver futures and $GC/gold futures declined dramatically over the week and settled near the lows.  $GDX (gold miners) closed the week red and gave up almost the entirety of gains from the previous 2 weeks.  

• $CL/Crude Oil futures gapped up again on the Sunday open, but this time price action was stymied by the weekly 50MA and the week settled solidly red and near lows. $XOP/oil equities also gave back some of last week’s gain, but are still holding strength against the indices.

Here’s how the week closed out:

For the week ahead (10/17 - 10/21/22)