Trade Plan for 8/22 - 8/26

Wanna Bet?

Follow @CordovaTrades✨ and collaborator @SLMacro on Twitter and please share if you find our work valuable.

Last week I wrote about the 200 DMA for $ES/SPX futures having a lot of eyes on it and a scenario where we may see a textbook rejection before a surge to 4380-4400.  We got that textbook reversal/rejection so now the question - if that projection is correct - is how low will it go before it becomes another short or longer term ‘buy’ opportunity?  

I added to my gold miners positioning on the dip last week with defined risk and I continue to believe that a bullish oil reversal has begun so if you follow me on Twitter, you saw me live tweet near the lows (86.87) that I was taking the long trade with a stop below the lows that never came💰.  Oil reached 91.69 from that low before closing the week at 90.44 :

Julia Cordova✨ @CordovaTrades

Oil/ $CL is slip sliding from an hourly bearflag, with a measured move of 84.16 BUT there is some possible divergence and $XOP hasn't poop pooped, so I am long here with a stop below the recent lows. Back above 88.42 and bulls back in business for the week.

Fed Chair Jerome Powell speaks Friday morning at 10am Eastern (1400 GMT) during the Jackson Hole conference, so this week will be exciting.

Summary of Market Action Last Week:

• $ES/S&P 500 Futures, $NQ/Nasdaq futures and $RTY/Small caps futures all reversed and closed red after $ES hit the much watched 200DMA (@4322 at the time of reversal) and rejected.  

• $GDX (gold miners) reversed after touching the weekly 9MA and the weekly candle looks unfortunate, but has thus far maintained higher lows. $GC/gold futures and $SI/silver futures followed .

• $CL/Crude Oil futures had a slight negative week, but $XOP/oil equities managed to close green showing strength against a broad market selloff.

Here’s how the week closed out:

For the week ahead (8/22-8/26/22)