Is the Market Finally Turning the Corner?

THE WEEK

Last week we talked about the three possible patterns coming out of a downturn:  V-up, Sideways or Bear Flag doing further down.  We definitely saw a V-Up this week. This V-Up was started by money coming into the Market.  This tells me this isn’t just a quick up followed by a quick down.  This move up has underlying volume support and will probably sustain itself

The Accumulation/Distribution for the Market is still at an E.  What this means is much of the big money from industrial traders is out of the Market right now.  As money comes back into the Market expect more of an up trending pattern. 

LOOKING AHEAD

This coming Wednesday the Federal Open Market Committee (FOMC) releases the Meeting Minutes.  These minutes are a detailed record of the committee's policy-setting meeting held about three weeks earlier. The minutes offer detailed insights regarding the FOMC's stance on monetary policy, so currency traders carefully examine them for clues regarding the outcome of future interest rate decisions.  During the fight against inflation the minutes release cause a reaction in the Market place.  I don’t believe we will see much of a ripple this time.  

For the past year I have been predicting interest  rate cuts would probably start in November 2024.  I am rethinking that prediction based on the economic data recently released and hints in Chairman Powell’s latest press conference.  September? – Maybe!

HOW AM I DOING?

Well!  I had a ROI of 9.6%.  It would have been even better except for a misstep on an Iron Condor trade on LULU.  The price suddenly shot up overnight past my Call Vertical.  Not much I could do other than buy back the short position and let the Long position make a little money as the price continued up.  This type of trade management is critical and is what we teach in Investing Buddies.  You will have a bad trade occasionally but managing that trade in crisis means the difference between overall losses and gains.

Big thanks to Tammy Barrett for sharing a trading style she call Totally Synthetic Trades

On Thursday’s Webinar.  She will do a short segment this coming Thursday with her favorite application of this trade.

The Market is going up nicely and is the kink of Market that Money Press trades are well suited for.

This Thursday’s Webinar

Comparison of Up trending Price/Action 

To find the ideal look for placing Money Presses (Credit Diagonal Spreads)