Relief Rally Surprises after the Fed Day

[Music] good evening theo trade this is corey rosenblum and you're watching the not the video for the 23rd of september here in 2021 we got ourself a by the pullback which is just a continuation of the uptrend in motion thought that could have fallen apart thought that could have been the one thought that could have been the breakdown that was the any type of downside play but once again any of these prior pullbacks could have been the one the last time we really got this deep under those support levels was earlier in march in 2021 and that led to it was really similar to this earlier into february and march we had that pullback but then the next few sessions were once again a little volatile but still strong to the upside as the uptrend continued and again markets don't go straight up or straight down they tend to wave wiggle squiggle which means higher highs higher lows higher highs higher lows higher highs and that's just what defines a trend is not one-sided action it's not straight up not like that but it's what we call wiggles and squiggles and that deep pullback did not result in anything more than a steep support balance off of 4300 and we are post the fed or after the fed meeting on wednesday now that's the s p in the nasdaq we are pushing back to the highs or at least to the midpoint of that range and the dow is where it gets interesting the s p and the nasdaq are still trend up but as we've seen the russell is just playing within a broader sideways trading range so that was a fade or a long buy signal not for any trend pullbacks and no dip buying just buying a support level similar to the other turnabouts or bounce spots again nothing out of the ordinary no conspiracies just playing a range and the trading range is roughly 2300 just about 23.50 that's the upper bound and shorting or fading fade just needs to go short the highs fade also means to go along the lows and that's a contrarian or range type of strategy this one is just another of those again a dip is a pullback in a trend these are dips these aren't dips these are sideways box buys and that is in the russell the iwm again don't look at those just look at the support levels but it's also playing out in the dow mini futures and if we want to just get this clean to a basic chart that's the support levels that we have and the dow is turning more into a sideways trading range just like the russell and that russell is small cap now the nasdaq and the s p everything else off the chart is having continuity of trend as opposed to reversal we are still closely watching there are no predictions here there are no foreknowledge or foresight we are playing step by step day by day week by week and swing by swing and that's where the market is doing as well so any trapped shorts help push the market up on the plate of the upside outside the equity market we have crude oil which is again similarly a little more volatile but playing back to the upside this uptrend has not quite been broken gold continues to play in a downtrend and i think that gold has a little more chop or volatility it's not quite as clean or clear you can't really call this sideways definitely can't call it an uptrend it's more of a declining sideways trend that if anything has a little more downside action than not and the bond market was of course where the action was today let's pull we'll start with a daily chart we're stabilizing into a range and again that may be the general theme as opposed to trend it's just range box or rectangle lows would be up to the 146 in the tlt and just above 151 or 152 and that's again the trading range for the bond market the big move was on the intraday chart and this is volume profile type logic but on the intraday chart this is the bond market tlt which began with a gap to the downside and accelerated on high volume this is of course the tradable tlt the same type logic occurred even overnight or yesterday's session after the fed the fed meeting was right here 11 o'clock and the bond market zn treasuries began to trade lower and that trend continued or the sustained directional movement continued into today's session and really all through today's session while at the same time that directional movement if you think about it a different way the s p traded all the way up trend up the bond market traded trend down that's expected that's logical doesn't always happen that way but money flowed out of the safety of treasuries just in today's session and flowed into the equity market and that chase performance money chase performance the market got heated and squeezed to the upside today and some of the leading candidates in the s p 100 included salesforce.com slumberge which was a relentless trend general electric and some financial companies which include capital one financial citigroup bank of america american express and of course we have a couple of energy stocks which include exxon mobil and these were some of the leaders in today's session the broad-based leader of today was not the financials but we'll highlight it because it's a larger market cap than the leader which is xle energy and again that is just relentless and that's to an extent on the trend of crude oil which also had a bullish balance in today's session so all these things are tying together equity market is rallying the bond market has fallen at least in today's session again crude is bullish and leading stocks will be to the financial sector on our market watch tab we can drill a little bit closer into today's performance the weakest wish utilities think of that almost like a bond market in the stock market so that's safety of utilities they tend to have high yields or high dividends and tend to be safe they tend to function like a bond would but they're still equity companies so that fact that this is weak shows that the overall strength remains in the risk on or buying side of the market there are utilities and beyond that financials are right here our technology names including the monsters of tech microsoft apple google facebook tuning in amazon tesla but also nvidia and some other financial companies have sway as well in the s p 500 in the 100 we see the pronounced effect of these big names and in the nasdaq that was a little bit weaker and that was in part because treasury yields were strong today and there is the yield on the tnx we discussed that in tuesday video the update for tuesday we saw treasuries and yields on the chart planning ahead of the fed well treasury yields went up charger yields pushed higher and made a not a new yearly high clearly but a new swing high and a level not seen since early july and that's in the treasury yield side of the market and beyond equities or into a little deeper into the sectors and performance we have not had a lot of stocks actually very few of them some days not any of them made new 52-week highs today that has shifted in a big way again you can see the leaders in the s p 100 and some of the big market cap names are some of the ones that we can look at we can sort these and here's how to do that just as a quick note this is our scan tool this is to me it's going to be load scan query and it's actually going to be public new yearly highs and these are the names you can sort them different ways but i just highlight how i like to put it to a market cap watch and there's the market cap and we'll sort by that we'll actually pull that forward and sort by market cap so into a separate screen all we're going to do is look at a couple of the top market cap names starting which a stock we just saw which is right here crm that is salesforce.com and i'll push actually on the weekly chart here just showing the trend continuity it's a strong side getting stronger and that pullback similar to the equity market just careful on the thought process could have been the reversal but instead it was a support bounce and that did lead to new highs beyond that was thermo fisher tmo similar type weekly chart trend very very strong on the daily chart and that just got extended squeezed the last few sessions in fact tmo has been making new 52-week highs just about each of these sessions texas instruments comes up next not the strongest trend but nonetheless a new high for txn and then we have conoco phillips we saw that from exxonmobil conoco phillips over here which is there and just played up to new highs and that's not really a strong weekly chart trend that's more sideways not necessarily a good bullish candidate but nonetheless that's what the scan is pulling up and a stock that we call the overpriced burrito which is just shy of that 2 000 per share who knew a retail restaurant name like chipotle could be this expensive and that does have the affectionate name expensive burrito not too long ago that was just under the fifteen hundred per share now it's just shy of two thousand now that is a weekly chart for the record book that is a quite stellar movement in a stock that would not seem to be on most people's radar as a very very strong performance stock we might think tesla might think apple amazon popular technology names would be strong but it does not always have to be the obvious name sometimes a little hidden stocks can sneak up and that's probably too high to trade so that's just noting where the levels and spots are autozone and plenty of others would have come into the motion on the flip side there are a few stocks that may do lows biggest one we highlighted this on tuesday's video with earnings coming up and it was fedex so fedex has actually been in a downtrend on the daily chart since may lower low lower high break the averages and they all turn bearish and the last update was over here and my thought process is that which is weak tends to get weaker that which is strong tends to get stronger and fedex is made not only a new 2021 low but we're seeing levels not seen since the latter part of 2020 and we can look at a few other stocks insight incy that was another candidate that's the short side and we have lam weston holdings lw just naming stocks that are making new lows to counteract today's bullishness and then hormel foods which was in tuesday's video that extended and made new lows as we pull into the end of the week friday's coming up the fed's behind us we have earnings coming up for a few key names but right now just continue watching this pullback and the recovery and how it looked very precarious of the downside but so do these other moments and the end result if this if passed is prologue the next phase is a very very quick support relief bounce and it could be violent so please be hedged be careful be safe short term intraday and beyond as always be careful and safe this is corey rosenbloom with the knights theo video update for september 23rd 2021

Channel: TheoTrade, LLC

Views: 1,931

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Keywords: theotrade

Id: z_RlZ5151rw

Length: 12min 23sec (743 seconds)

Published: Thu Sep 23 2021