What Happened Today And Setups
First, if you want to check out my setups I'm trading -- click here: https://investorcharts.net/long-short-gameplan-chart-book/
Lets cover some of the market action today
Now, a total pivot by Brainard. While typically more on the Dovish side, Governor Lael Brainard said the central bank “will continue tightening monetary policy methodically” and will start “to reduce the balance sheet at a rapid pace as soon as our May meeting.”
This sent bonds to close at fresh contract lows.
I do think (and have though for a week or so now) that bonds are getting pretty cheap relative to the slow-down we might be seeing on the horizon. Transports for example are really starting to lag. Ryder: woops
I do largely think the pain trade across indices is still a new high, and then we top out for a bit and the bonds are much safer to buy once we start pricing in cuts, not hikes. For now, it really is anyone's game and I'm just following my trend systems. Again, my favorite setups are in the link at the top.
The Trump SPAC (DWAC, Truth Social) got killed today, down 15%.
No support on this one until the low 30's. Even then, you have to be quite bold to get involved. Meme stocks like AMC failed around the 200-day. I keep saying it, these are permashorts until they go back below the pre-Covid low.
A fair bit of relative strength in the energy complex. I think OIH is flagged here, but I would prefer to buy it lower.
I keep saying over and over again: watch Bitcoin for a direction on risk. We failed the 200-day here. Guess what, market started to lag.