Weekly Perspectives: The Fed put lives on

Weekly Market Outlook For October 7-11, 2019
October 5, 2019
Weekly Market Outlook For October 14-18, 2019
October 12, 2019
Show all
Weekly Perspectives:  The Fed put lives on

Sign up to our newsletter and be the first to receive the Weekly Perspectives newsletter delivered directly to your email inbox.


 

Hi traders,

The Fed put lives on 

In case you missed it, this week the markets swooned lower on a lower than expected ISM # only to bounce back later in the week as market participants decided that bad news was good news as weaker economic #’s may force to Fed to cut rates which would ultimately be good for stocks.

In the end, it appears the current market narrative is a win-win for stocks. 
Bad news then the Fed will cut rates and that will be good for stocks.
Good news and well that’s also good for stocks. 🙂

So one has to ask what would change this current narrative?
Two obvious scenarios come to mind –

  1. If the Fed somehow runs out of bullets or
  2. If the Fed somehow is prevented from decisive taking action.

With the 1st trading week of the Q4 in the books, from a price-action perspective, the markets traded most of the week below the opening levels of all the major timeframes and finally found some support off of the 200 day EMA.

Buyers stepped up and took control in the latter half of the week however the next big area to watch is to see how the indices can navigate the monthly and quarterly opening levels.

Bitcoin and ETHUSD are also now on the sell watchlist as they both have flagged setups that may see them both breaking below last month’s inside quarter.

 

Watch this week’s Weekly Outlook video to see the setups and levels we’ll be watching.

In this week’s video, we look at the technical outlook for the VXX SPY QQQ IWM DIA EEM TSX TLT GLD SLV BTCUSD ETHUSD TOTAL EEM MSFT ETSY SQ NBEV MDT NVTA TSLA and more for the week of Weekly Market Outlook For October 7-11, 2019.

 

Using natural language to trade – 

This week I came across a promising new platform (big thanks to Sandro for sharing) called Capitalise that uses everyday words to turn your trading ideas into fully automated trading strategies.

The platform integrates with trading accounts on multiple third-party exchanges and brokers including equities, forex, and cryptos, so you can manage all your trades in one place and take control over your trading. 

Eventually, Capitalise will support the backtesting and optimization of trading ideas and support even more exchanges and brokers.  

I tried it out via the interface to Interactive Brokers and liked how easy it was to create a simple trading strategy although it still lacks the price-action attributes/operators that I would personally need to implement some of my setups.

I think this is a very promising tool that should get a lot more useful once more of the features have been rolled out.

It’s still early days so there are currently no usage fees however expect that to change as it matures.

Here’s a quick rundown on how to create a trading strategy. 

If you find the product interesting let me know!

 

A pat of gold – 

As part of my pre-market trading ritual, each weekday morning I like to start my day with a nice cup of Bulletproof coffee.  

For those not in the know, Bulletproof coffee is made by blending together coffee from high-quality coffee beans, MCT oil, grass-fed butter, and personally I also add in collagen peptides.

I’ve been drinking this concoction for the past 5 years and still enjoy the energy, focus, and sustenance that allows me to focus on trading and not worry about snacking or eating until the trading day is done.

My go-to grass-fed butter has always been Kerrygold which btw is very hard and expensive to come by here in Montreal.  

Here’s a fun article from Bloomberg on the history of how the Irish Dairy Board managed to turn Kerrygold into America’s second-best-selling brand of butter with double-digit growth almost every year for the past decade.

 

Recommended

Weekly Perspectives: The Fed put lives on

by editor time to read: 3 min
0
×
Sign up for our weekly newsletter
Stay up to date with the podcast, and get notified when the next podcast drops.