The System Gave the BUY Signal and Bulls Regained Control
Note: This newsletter is FREE for all members of the Kane Capital discord. Head to kane-capital.com to try our 7-Day Free Trial.
Market Recap: Earnings season brings high amounts of volatility and we have certainly seen that this week. Headed into every earnings season I like to remind myself to not develop directional bias based on earnings reports. It is crucial to trade based on the chart during earnings season because things move so quickly and developing “bear” or “bull” bias can be extremely harmful to ones account. On Tuesday/Wednesday the market provided some nice opportunities to trade the downside. Key word trade. Important to play for smaller moves and get out and leave a runner. Holding for the giant move is where you can get in trouble. We saw that today when bears got squeezed with ES deciding to rip 100 points with 0 pullback.
In regard to The System, we got a break back over the 50sma on both the 1hr and 30min charts. This was of course bullish and a signal that bulls were regaining control of the market. We also got a technical BUY signal on the 30min SPX chart with the bullish cross of the 10sma over the 50sma. This all resulted in a 60 point move higher intraday in ES, which I was able to catch and which I will discuss in the My Trading section of this post.
My Trading:
(Note: All trades mentioned below were alerted live in the Kane Capital discord where we are currently offering a 7-Day FREE Trial. For live trading alerts you can head over to kane-capital.com)