Trade Plan for 8/1-8/5
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The strategy I outlined last week was that I would fade the initial move of the week if it were extreme:
This strategy worked exceptionally well. Tuesday closed near the lows after 2 days of selling. Then the market recovered well overnight to gap up and rally into the Fed decision on Wednesday afternoon.💰
Here’s a chart of $SPY for Monday, Tuesday and Wednesday from last week:
I was also bullish on the metals and energy for the week.
Summary of Market Action Last Week:
$ES/S&P 500 Futures, $NQ/Nasdaq futures and $RTY/Small caps futures gained positive ground on the week and all broke out from their downward sloped channels. All 3 closed Friday above their weekly 20MAs as well.
Precious Metals saw Silver leading the upwards charge with impressive gains. $GDX (gold miners) had a green week for the first time in 2 months.
$CL/Crude Oil futures reversed course to close green, while $XOP/oil equities gapped up and had a very strong week closing above its 20MA just like the indices.
Here’s how the week closed out:
For the week ahead (8/1-8/5/22)