In this post, I’ll focus on setups that I’m monitoring for both long and short positions. With a chart and short write-up, this is a quick way to scan and plan potential trades.
These ideas are the end result of my process to identify stocks offering the right combination of growth fundamentals along with a proper chart setup. Live alerts are sent to Traders Hub members only.
Stock Market Update
Disagreement and uncertainty over the forward path of monetary policy is rising at the Federal Reserve. While the central bank left policy rates unchanged as widely expected, there were three dissenting votes against the action where officials preferred a rate hike. It was the largest number of dissenting votes early into a new Fed chair’s term since the 1970s and highlights the growing divide within the Fed as consumer inflation pressures mount. Fed Chair Kevin Warsh continued to portray a hawkish view toward inflation, and reaffirmed the Fed’s commitment to a 2% inflation target. Following the meeting, massive moves are underway across key segments of the capital markets. That includes the 30-year bond yield, which is building on another attempt to breakout over the 5% level (chart below).
There’s also an outsized move happening in currency markets. The U.S. Dollar Index is seeing a sharp reversal lower from a double-top pattern after testing resistance near the 102 level in the chart below, and is now losing support at the 50-day moving average (black line). While part of the move is being driven by speculation over intervention by Japanese officials to support the yen, the pullback in the dollar has implications for other market sectors. The broader commodities trade is heating up once again, while developed international equities are nearing a breakout from a multi-month basing pattern (more on that in our trade ideas below).
Other sectors seeing a recent pullback are trying to find traction in the wake of the Fed meeting, including semiconductor stocks. While time will be needed to see new bases evolve with that group, plenty of relative strength is emerging elsewhere. Keep reading to see:
Open ETF positions.
Open stock positions.
Chart analysis for new trade ideas.
