We have a busy week ahead for us as traders and investors. In fact, the week has enough important events to likely dictate the short-term trend for the coming weeks. Among the events, this week include:
- Another heavy week of earnings.
- FOMC Meeting Announcement Wednesday 2:00 P.M. EST – after extremely strong GDP numbers came in all eyes will be on the Fed this week to see their reaction.
- Unemployment Report – Released before the market opens on Friday.
For directional traders, whenever there is a heavy week of news events a note of caution is always warranted. The trend one day can be quickly disrupted by a major news event the next. Technical analysis, trends, support, resistance…these are powerful tools that can guide you to financial freedom. However, with news comes volatility and with volatility the comes the unknown. Something to think about for directional traders this week.
Once this week clears, we could have a tremendous amount of information to base trading and investing decisions for the month of August. The bulk of earnings season will start to be behind us and we will not have another unemployment report or Fed meeting for over a month. There could be many great trading opportunities this week, just be aware of the landscape in which you are basing those trades.
Chart of the Day
SPY pushing into resistance
The chart below is for the SPY, a popular ETF designed to track the S&P 500. After a turbulent year, the markets found themselves pushing all-time highs only to have resistance levels come into play. Resistance is resistance for a reason and it will be interesting to see in a week full of news whether there is enough bullish news to close above the all-time high mark.
Video of the day
How to Play Facebook After Earnings Gap
Coach Mark analyzes Facebook after the huge gap down and discusses two potential ways to play this and other gaps. One for the more patient trader and one for you aggressive types out there.
Today’s Lineup
Coaches Lounge 11am EST
Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.
Halftime Report 12:30pm EST
The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day and fun in a way that only Matt and Tim can deliver.
