Afternoon Scoop
If you weren’t around today or haven’t seen anything about the markets, you haven’t missed much of anything today. It was a real snooze fest 😴. The good thing is even though it was a boring day, we held some levels which were important.
Markets
- News:Â No major changes today that we didn’t already expect, Powell unsure of the next increase size for rates, most expecting 50 bps right now.
- Futures chart update:Â We are right where we started this morning, nothing has changed or made us budge, news earlier made it a little volatile but we held this area well today.
- Forecast:Â No one knows what overnight holds but, if we can make a push higher past the white line shown on the chart we could see a push higher to end the week.
Chart Analysis
The Open and Close Matter
How a stock opens in the morning and how it closes in the afternoon are two different things. I’ve learned this from many experienced traders, and while they share many insights, one point that stands out is the significance of how a stock closes for the day.
Red to Green Moves
It is quite common for stocks to gap down at the open and recover all those losses by the end of the day. This can happen often.
This is generally considered a bullish move, as it indicates the stock was able to recover quickly and buyers kept stepping up to the plate.
Bulls finish strong
In this case with NVDA, what we can see is buyers stepping up at the end of the day. Ideally, we want stocks to close at or near the highs of the day, as this indicates more buyers are present and eager to participate.
On the flip side, if a stock opens higher but fades throughout the day, this is not as bullish, as buyers are not stepping in and are comfortable with letting prices fall.
The key takeaway is to observe how a stock closes and opens. This can be useful in predicting what we might expect for the following day.
Daily Wrap-up
Overall, it wasn’t a great trading day unless you’re a scalper, and I can assure you I’m not! However, we did manage to hold levels today and it wasn’t a completely unproductive day.
We’ll see if tomorrow brings a reversal for the week that can push us higher to close out on a positive note. However, we don’t hope and pray around here; we plan.
Enjoy the night, and I’ll see you in the morning!
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