Hey day traders of the world! This week ES held its 18 day sma and lower parallel up channel on the daily timeframe. Friday we closed as a doji on ES after retesting the breakup from Thursday. Several tweets about the China tariffs caused sudden selling intraday, but recovered like we have seen before. The catalysts that are still lingering are the China tariffs (now lowered to 10% instead of 25% on the 0B worth of goods) and NAFTA deal with Canada so be vigilant when trading.
This Friday (9/21/2018) is quadruple witching so expect an increase in volatility causing a larger range of price movement due to market index futures, market index options, stock options and stock futures expiring.
A lot of traders are expecting selling since historically September is known for being a red month and leading into October before the Santa Claus rally ending the year. However, if the overall market indices can take out the highs of Friday’s candles, we should see a new ATH on ES and rally in the others. If ES does breakout, the upper target is the top of the daily top trendline of the parallel channel. If the market fails the push higher or we see selling to begin with, ES is most likely going to test the 50 day sma.
An interesting pattern that we have noticed is that when price is about 80-100 points away from the 50 day sma on daily, ES pulls back to test it. The first week of September we experienced this selling pattern, but right now ES has about 30-50 points of upside before this pattern is proven to be true again. This just shows that the markets are in a strong bullish uptrend as long as they push higher next week.
This week’s economic events include (in PST):
5:30am – Empire State Manufacturing Index
5:30am – Building Permits, Housing Starts, Current Account
7:30am – Crude Oil Inventories
5:30am – ADP Non-Farm Employment Change, Unemployment Claims, Philly Fed Manufacturing Index
7am – Existing Home Sales
6:45am – Flash Manufacturing PMI
We discuss critical price levels to watch for on /ES, /NQ, /YM, /RTY, /CL, $DXY, AAPL, AMZN, BABA, FB, IQ, NFLX, SHOP, and TSLA.
1:10 – /ES
4:18 – /NQ
5:15 – /YM
6:40 – /RTY
8:20 – /CL
10:50 – $DXY
12:30 – AAPL
14:55 – AMZN
16:10 – BABA
17:32 – FB
19:45 – IQ
22:08 – NFLX
24:05 – SHOP
26:40 – TSLA (Joe’s favorite Company lol)
Let us know if you would like us to review a ticker for you. And if you have questions about trading in general. We are here to help.
Enjoy your weekend and we look forward to sharing another update next weekend!
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Disclaimer: ATR Target Trading is not a financial adviser. ATR Target Trading is a stock trading software company that provides proprietary signals to our customers, which includes brokers, hedge funds, and individual traders, so they can gain in edge in today’s markets that are overrun by trading algos. We also provide trading education.
Stock Market Review on 9/15/2018