Trade Plan for 12/5-12/9
Winter wonderland with pivots for polar bears
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Last week I once again kept the same slight bullish bias for the market with a bull/bear ‘key pivot’ of 3948.25. The hourly never closed below and it was a nice place to buy the dip.
I also identified a diamond consolidation on the hourly which is generally a choppy inflection point. The midline of the diamond was backtested Friday afternoon and I traded long into this backtest live in the Moneymaker Discord.
I was more decisively bullish for the week on precious metals and miners. $GDX hit my 29.80 target given weeks ago this past week.
I was bearish on both oil and oil stocks, so that was a bit of a mixed bag. I closed the remainder of my oil puts early in the week, but did scalp short on $CL/crude oil futures. I have been trading around a core short $XOP position for a few weeks now.
This week @SLMacro discusses volatility and how extreme price movements often cluster and are typical of a correction or bear market.
Summary of Market Action Last Week:
The indices were highly volatile last week. Wednesday’s Powell speech triggered a massive short squeeze, before a consolidation day on Thursday. Friday morning’s jobs data sent stocks back down, but the dip was bought. $NQ/Nasdaq futures led the upward momentum.
$GDX (gold miners) outperformed the indices once again, but has thus far rejected from its weekly 50MA. $SI/silver futures and $GC/gold futures both show impressive gains this week.
$CL/Crude Oil futures made both a higher high and lower low and managed to almost make up for last week’s loss at settlement. $XOP/oil equities declined for the week.
Here’s how the week closed out:
For the week ahead (12/5 - 12/09/22)