Trade Plan for 2/27-3/3
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Last week the market finally left the consolidation it had been in for a couple of weeks and it broke to the downside. Though I didn’t have a strong directional conviction for the market either way I leaned slightly bullish for markets with a plan to take advantage of a ‘take short profit/buy zone’ if price action were to travel there. We closed the week still within that zone.
I was bearish for the precious metals sector as they had shown weakness during the consolidation in indices, but I did start scaling into miners. Silver closed just a few cents below my ⚠️ level, so the suspenseful music is playing this weekend.
I was most confident in my bearish bias for oil with a plan to short any bounce up to 78.22. The shortable bounce came early in the week. Oil settled slightly lower despite a very strong day on Friday. $XOP/Oil equities managed to fight against weakness to close the week strong despite the market and the commodity’s slight decline.
This week @SLMacro looks at his favorite stocks in respective sectors/industries
Summary of Market Action Last Week:
Markets opened the holiday abbreviated week with a plunge. They then consolidated into Friday’s important PCE data and then dropped again, bouncing from lows at pivotal MA supports. All 3 of the major indices were red for the week.
$GDX/gold miners continued to show weakness after a brief backtest of the weekly 20MA from below. $GC/gold futures and $SI/silver futures both lost ground for the week without much of a bounce before settling on Friday.
$CL/Crude Oil futures and $XOP/oil equities managed to bounce substantially on Friday. Crude was unable to settle in the green, but oil stock outperformed for the week.
Here’s how last week closed out:
For the week ahead (2/27-3/3/23)