Alex's daily Market update & Focuslist - 12/29
Last trading day of the YEAR...!!
Good evening folks!
Tomorrow is the LAST 2022 TRADING DAY…
It has been one hell of a year, and I can only wish us a better 2023 market. :) 🤞
It has been a challenge, but we all grew as a community during this bear market. We’re all better and more skilled traders following that period.
WISHING YOU A VERY HAPPY NEW YEAR 2023 🥳🍾
Alex ✌️
GENERAL MARKET ANALYSIS
S&P500 (ES_F) Daily
Price Action Analysis:
Ok…this market is clearly in a choppy & volatile range area. We can’t follow through on either side for the last seven days and reverse each breakout attempt.
I drew a range box (orange on the ES chart - 3803/3918$) that will be the top/bottom levels to watch in the next few days. Until we break from either side, I expect more chop and a directionless market.
If you decide to play this market, you ask for trouble and being stopped out, long or short.
We are still below ALL KMA’S and in a downtrend, so be careful on the long side until we confirm an actual trend change, with AT LEAST a higher low on /ES.
On the upside,
3918$ top range box
On the downside,
3803$ bottom range box
NASDAQ (NQ_F) Daily
RUSSELL 2K (RTY_F) Daily
Alex’s TAKEAWAYS
One more day, one more reversal…
The market decided it was not following through on the downside and rallied on yesterday’s undercut of the lows. This reversal could carry on for a few days and create a slight pullback into overhead resistance. But the last few day’s actions proved to me that we could not be sure of anything, and we could as quickly rollover tomorrow and make a new low.
Therefore, I would advise sitting out this high volatility range area until we get clarity on the market direction.
That’s what I plan to do.
Market health & Trend indicators:
LT SIGNAL: downtrend (red) + BELOW 50dma = BEAR market (🟥)
MT SIGNAL: downtrend (red) + BELOW 10dma = Downtrend (🟥)
Tomorrow's economic news:
Gameplan:
The market is searching for direction, and I have just been stopped out two days in a row in the opposite direction. Therefore, I don’t plan to take any trades tomorrow and will wait for a higher probability area to re-engage.
That’s something that I’ll try to improve in my trading for 2023.
In the following sections of tonight’s letter, I’ll cover essential parts of my daily routine & preparation for tomorrow’s trading session.
✅ My daily Focuslist, including setups, alert levels & explanation (LONG/SHORT)
✅ My Portfolio update
✅ Sectors Review
✅ Market Breadth & Internals
✅ Economic Calendar
✅ Prime Model spreadsheet (PT_database)
✅ Leaders list (technicals, fundamentals & potential TMLs)
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