PrimeTrading daily Update & Focuslist - 05/04

FED day tomorrow!

May 04, 2022

Disclaimer: This newsletter is not financial or investing advice. The information is for education purposes only and reflects only my own operation.

There are good & bad from today’s action, but overall we’ve held very important levels for now on the downside, while not confirming strength on the upside.

We touched & held 4138$ level and closed 0.65% higher, but on the upside, we were not able to close above the 5dma that is now acting as resistance.

I see today’s as being an indecision action waiting for the important FED meeting tomorrow.

Trend is still down, we’re below all kma’s, and tomorrow will definitely be a catalyst that will decide if we go lower or climb higher from here.

Not bad action as stocks above 50 & 200dma jumped a bit & we had good NetAdv > 800.

VIX dropping almost 10% below 30 is a big positive here.

Tomorrow is FED day with the Interest Rate decision @ 14:00 which should come at 0.5% rate increase based on expectations. Then you’ll have Press Conference at 14:30 that will also cause volatile price action as traders are glued to what Powel has to say.

Remember, the first move is very often a false move. I also like to wait for the next day confirmation before stepping in some names. Too often, we close the FED only to reverse right at the open the next day.

Here’s a feel of Last 2-3 months leaders coming back strong after finding either support at their 21dma or 50dma.

Those sectors remain my sole focus right now and Growth & Tech will have to prove themselves.

Many names of my FocusList broke out strong today and I added 2 names, UAL & EQT.

Despite being invested at roughly 50% and have a good cushion on most of them, I don’t plan to carry them all into the FED meeting tomorrow. Depending on tomorrow morning action, I might reduce considerably my exposure before 14:00 FED meeting. I see these positions as really ST swings and will probably wait Thursday or Friday for more clarity on the market reaction before putting back exposure.