That Was... A Day
Crisis creates volatility. If we can compartmentalize our emotions and stay focused, there are opportunities if you look for them.
Just before the market open today I shared my thoughts on the setup from the price action in the S&P futures. Based off my technical thoughts, I thought it was likely that the market would open at lows and rally higher. Here’s the updated S&P futures heading into overnight trading before the Friday session:
Aside from the massive reversal candle, my immediate takeaway is the big bullish divergences in RSI and MACD. As I explained this morning, the market generated a lower low in price coupled with higher lows in some of the standard strength indicators. Predictably, there was a reversal that intensified after Biden announced apparently softer than expected sanctions in response to Russia’s aggression in Ukraine. Gold was on an absolute rollercoaster ride; making a massive trip from $1,915 to $1,975 before dropping like a stone to $1,880 and then settling a little under the open.
If you comprehend the bullish RSI divergence in the S&P, you might have noticed the bearish one in Gold. As crazy as that Gold candle was though, the strangest action I saw on my watchlist has to be Fubo TV (FUBO). For this view we shift to the 60 minute chart:
Fubo closed yesterday at $7.62, opened this morning down 17.5% at $6.28 before ramping into an $8.39 close - a 35% move off the low in ONE DAY.
For full disclosure, I don’t own FUBO though I almost pulled the trigger on a swing trade after that reversal. I already have exposure to other streaming names that I like better, so I kept my self control. That said, Fubo made a massive engulfing candle on the daily chart so as long the broad market has some follow through tomorrow, Fubo probably has another dollar in it before that trade gets dicey.
Now, for the buys I did make today.
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