BULL TRAP WARNING: MARKETS ARE ABOUT TO DROP AGAIN...
These notes were generated by AI and may contain inaccuracies.
Markets are bullish today after two weeks of Fridays favoring bulls. CPI inflation report released today came in at 2.4%, lower than the expected 2.5%, moving closer to the Federal Reserve's 2% target. This increases likelihood of interest rate cuts, exciting the market as an intraday positive catalyst.
On the 5-minute timeframe, clear sell-off yesterday with 600 as common support for QQQ. Markets consolidated between highs of 603 and lows of 597-598, then broke above the EMA on the 30-minute chart, indicating an uptick. Larger timeframes show consolidation, not incredibly bullish overall.
Don't fight the trend. With markets pushing up from consolidation, going long was favorable. Now overbought, experienced traders can consider shorts or overbought reversals, but beginners should avoid trading against the trend. Close shorts daily due to higher risk. Congratulations to those who went long overnight.
CPI report based on last 12 months, missing October and November due to previous government shutdown. Still real data at 2.4% without those two months—celebrate with that understanding.
Over 60% probability of government shutdown tomorrow, Valentine's Day. Markets often don't care much, especially if bullish overall, unless there's fear amplifying panic and selling. Focus on macro outlook.
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