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Marching to the Beat of the Markets!
Issue #17
Hi There! Spring is almost here and I am thrilled to bits! If there's one thing you need to know about me, it's that I am an island girl through and through (read Issue #14 to learn where I am from...lol). Anything below 70 degrees Fahrenheit and I am wrapped up like a chicken roti. But, hey, you can take the girl out of the island, but you can never take the island out of the girl. So, a huge, gracious howdy-do to March and all the warmth and sunshine it's going to bring!
Okay, let's dig in!
Last Friday's market performance dealt a heavy blow to Wall Street, resulting in the largest weekly drop thus far in 2023. The Dow plummeted by a staggering 3% - the worst weekly decline since September. The S&P 500 and Nasdaq also sustained significant losses, dropping by 2.7% and 3.3%, respectively. All in all, the inflation issues and lower earnings guidance that sparked last week's sell-off have thrown a monkey wrench in investors' analysis, increasing fear, uncertainty, and doubt.
We are still watching Bitcoin (BTC)! The price dropped hard last Friday but held support at the 35-moving average near the $22,706.20 level.
Other key highlights from last week:
Amazon closed $3.9 billion deal to acquire One Medical
Oil bulls turned a red week to neutral by clinging onto the Russia cuts story
MakersPlace Phygitals: The next big thing in NFTs
Polygon made major announcements
Here's what to expect in the week ahead:
Investors and analysts will be scrutinizing the U.S. medium-high impact economic releases for more insight into interest rates in the near future. Data of interest include the Durable Goods orders (on Monday 2/27/2023), the CB Consumer Confidence and Goods Trade Balance (on Tuesday 2/28/2023), the weekly Jobless Claims (on Thursday 3/02/2023), and the ISM Manufacturing and Services reports (on Wednesday 3/01/2023 and Friday 3/03/2023, respectively).
It would behoove you to check out the Fed speakers in the upcoming week, particularly Governor Chris Waller (Hawk). His speech on Thursday will focus on the economic outlook.
The upcoming high-impact global news includes Switzerland, Canada, and Australia Gross Domestic Product (GDP) on Tuesday, and Japan and Euro Area Consumer Price Index (CPI) along with the release of the ECB Meeting Minutes on Thursday.
Notable earnings include Target (NYSE: TGT), Lowe's (NYSE: LOW), Dollar Tree (DLTR), Macy's (NYSE: M), Best Buy (NYSE: BBY), Nordstrom (NYSE: JWN), Costco (NASDAQ: COST), AMC (NYSE: AMC), and C3.ai (NYSE: AI).
Next week's anticipated bias (not financial or investment advice):
Monday (02/27/23) - Last Monday of the month; Expect volatility and volume
Tuesday (02/28/23) - Bearish
Wednesday (03/01/23) - Track volume
Thursday (03/02/23) - Look for short opportunities
Friday (03/03/23) - Track the low of the day
Trading Tip: March is historically strong early in the month!
February Week 02/19/23 - February 02/25/23 Recap
Special Tools and Strategies
In Issues #1 and #4, I discussed the 200/800 EMA cross and TDI Shark fins to help with your entry and exit strategy. Here is a strategy that can help you stay in trades longer:
The 5/13 EMA cross!
The 5 and 13 EMA (Exponential Moving Average) cross is a strategy that uses two different EMAs, one with a shorter period of 5 and another with a longer period of 13, to identify potential trends in the market, particularly on the 5-minute and 15-minute timeframes.
The cross of the 5 and 13 EMA can be used as a confirmation of a trend change before deciding to exit. This means you might be able to hold the trade until you get a touch of the 5 and 13 EMA. The touch is usually followed by a switchover.
To be clear, the 5/13 cross is not a standalone strategy. It’s recommended to use this along with other indicators or analyses.
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Disclaimer: This newsletter is strictly educational. The information provided in this report does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the report’s content as such. Please be careful and do your own research.