Morning Scoop
All eyes are on Powell this morning 
Markets around the world are eagerly waiting to see how the US Fed responds to the recent banking disasters. Regardless of their decision, one thing is certain – we can expect volatility today!
* I would love to hear some feedback, see comments, or chart requests if anyone has anything. I’d love to receive a chart and put it in the newsletter to see where we think the short term price could be headed, if you have anything let me know! Anyways, Let’s dive right in.
Markets
📰 News
We know what we’re waiting for, it’s at 2 P.M today. That’ll be the headliner until then.
📈📉 S&P 500 Futures Update
The price is still holding above our previous levels, specifically the rectangle representing the highs that we recently broke and are now trying to maintain. We’ve been stuck around the $4000 area for quite some time, almost like a magnet.
🔮 Forecast
The markets seem to be saving their big move for later today. I anticipate a significant movement in one direction, which will be followed by a rapid shift in the true direction that the price wants to go. In other words, if we initially experience a significant drop, we can recover quickly and surge to new highs, and vice versa.
Chart Analysis
$TSLA didn’t fool around. We looked at this the other day and I mentioned we we’re at an interesting spot for a long or short. Well, congrats if you chose long! Tesla shot up from $180 to almost $200 as of right now.
Tricks of the Trade
Backtesting is the ultimate tool for traders. Many traders spend their time searching for the “best” strategy or one that yields minimal losses, but the truth is that there is no such thing. In this business, losses are inevitable, and accepting that fact is essential to becoming a profitable trader.
I realized that I needed to pick a strategy and test it out to see if it would work in live markets. Manual backtesting is an effective way to visually analyze the type of trade you expect to make and your entry parameters. By conducting this process over 100 trades, you can determine if your strategy is viable or if it’s not worth pursuing.
If you’re considering trading or have spent some time looking at markets and charts, I highly encourage you to backtest your strategy. Think of it as practice – you’ll begin to recognize the patterns you’re looking for and become more confident in performing in a live environment because you have data backing up your strategy.
Wrap-up
That’s all for today, folks. Just a reminder that we have a meeting scheduled for 2 PM. Until then, let’s refrain from taking any unnecessary risks. If you do plan on trading today, I suggest keeping it light and closing your positions before the meeting. Remember, taking reckless actions is gambling, not trading.
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