Trade Plan for 8/25-8/30
Will August go out with a bang?
Last week I was slight bear, in the sense that I was looking to short pops as I also wrote that I wouldn’t be surprised to see $ES/SPX futures close slightly positive. My key for the week was $ES 5608. I covered most shorts I took there. The other major weekly level I was watching was $ES 5582.
I was far more optimistic for $GDX/gold miners and precious metals:
$GDX gapped down last Monday morning (giving great entry), then hardly ticked lower before beginning an ascent.
I was slightly optimistic for $CL/crude oil futures again not expecting a huge rally, but rather a pop and noted in Thursday morning’s note that an hourly close over 72.62 (after the low of 71.46) could be a tradable short term bottom. ✅
Summary of Market Action Last Week:
The indices gapped up to start last week and chopped. $RTY/small caps hit lows on Tuesday but then started to hold relative strength against $ES/SPX futures and $NQ/Nasdaq futures. They hit lows on Thursday and then reversed upwards overnight into Friday. $RTY was the outperformer for the week.
$GDX/gold miners outperformed $ES and $NQ, despite $GC/gold futures working off some of its outperformance with consolidation this week. $SI/Silver futures traded momentum with the indices, but had a stellar day on Friday gaining ground against them.
$CL/Crude Oil futures closed slightly red, but with an impressive reversal off its lows, while $XOP/oil equities settled nominally flat.
Here’s how last week closed out:
For the week ahead (08/26 - 08/30/24)