NQ1!: Triple Tap or a Shitty Head and Shoulders?
The market really likes 3s...sometimes 4s, but mostly 3s. This is a pattern I love to test out all the time, because I'm an uber nerd and designer at the same time. Patterns are my jam. So generally the rules of head and shoulders are that the bottom candles/wicks have to line up roughly the same...where you can stick a line through it and you aren't cutting off the legs too much. Plus 3 mountains, the middle one being the largest. Think of it as the market giving you a middle finger and that's pretty much the best way to see it.
So tomorrow (July 29) is Fed Reserve Chair Day and Big Daddy JPow (Jerome Powell) is likely going to talk up a good game with his usual, "We will do anything to keep this economy going!" Which I'm sure will make the crowd go wild. Hype usually jumps in the market on Federal Reserve Day and considering that tech earnings of some of the biggest companies (Google, Apple, Facebook, Amazon ..cough cough) are out on Thursday, the Nasdaq will likely take a morning power shake and get some gains.
So here is the tricky part. Remember when I said that the market loves 3s? We are still waiting on that right shoulder to form tomorrow (if it forms at all) and likely it will take most of the cash hour to do so with maybe a little help overnight. Jerome Powell speaks at 2:30 PM EST, thats 11:30 AM for my fellow west coasters. If you are bag holding some good tech stocks over recent days, this is a good time to take profits near the high of the day. Go ahead, you earned it. The bulk of the candle might form around 10,850 on the daily charts while the wick could drive up further (triple tap anyone?) to as high as 11,000+ to try to test that resistance one last time. If it fails (and is looking more and more likely) then prepare for some down action.
This analysis is also combined with warnings from FOREX, the VIX, the DXY (US dollar), Moving Averages, Wedge Patterns and more.
So lets also side note, after Wednesday the risk likely goes up for those that want to hold stocks overnight. The down turn could be delayed a day or two if the movements are slow and buy volume is low. Its hard to tell at this time. Federal Reserve week is always sketchy on the trade end.
All in all Happy Fed Day Everybody! Hope you get that overinflated money!
So tomorrow (July 29) is Fed Reserve Chair Day and Big Daddy JPow (Jerome Powell) is likely going to talk up a good game with his usual, "We will do anything to keep this economy going!" Which I'm sure will make the crowd go wild. Hype usually jumps in the market on Federal Reserve Day and considering that tech earnings of some of the biggest companies (Google, Apple, Facebook, Amazon ..cough cough) are out on Thursday, the Nasdaq will likely take a morning power shake and get some gains.
So here is the tricky part. Remember when I said that the market loves 3s? We are still waiting on that right shoulder to form tomorrow (if it forms at all) and likely it will take most of the cash hour to do so with maybe a little help overnight. Jerome Powell speaks at 2:30 PM EST, thats 11:30 AM for my fellow west coasters. If you are bag holding some good tech stocks over recent days, this is a good time to take profits near the high of the day. Go ahead, you earned it. The bulk of the candle might form around 10,850 on the daily charts while the wick could drive up further (triple tap anyone?) to as high as 11,000+ to try to test that resistance one last time. If it fails (and is looking more and more likely) then prepare for some down action.
This analysis is also combined with warnings from FOREX, the VIX, the DXY (US dollar), Moving Averages, Wedge Patterns and more.
So lets also side note, after Wednesday the risk likely goes up for those that want to hold stocks overnight. The down turn could be delayed a day or two if the movements are slow and buy volume is low. Its hard to tell at this time. Federal Reserve week is always sketchy on the trade end.
All in all Happy Fed Day Everybody! Hope you get that overinflated money!