05/13/2021 ES Trade Plan Worksheet

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May 132021

A jump in CPI sent US stock markets sharply lower on Wednesday, the largest down day since January.  Fear the Fed may take action to offset inflation underlies the bearish mood.

The ES e-minis have hit its 50-day moving average which should provide some support but also could be the start of another down leg if cleared.

Bitcoin sold off to below $50K after Tesla CEO Elan Musk tweeted that Tesla would no longer accept Bitcoin payments due to concerns of the increasing use of fossil fuels to run servers that mine bitcoin.  Musk said Tesla will resume taking bitcoin once mining uses more sustainable energy.  Musk also added that Tesla will be looking at using other, more energy friendly cryptocurrencies.

Colonial Pipeline restarted their hacked pumping operations Wednesday evening and oil prices tumbled around 2.5%.  The US East Coast is suffering gasoline shortages, much of it due to hoarding.  Colonial says it will take a few days for pipeline operations to return to normal.

Earnings include DIS, BABA, ABNB, COIN, YETI, GOOS, and DASH.

The economic calendar focus is PPI and Claims @ 8:30am ET.  Fed speakers include Barkin @ 10:00am ET and Waller @ 1:00pm ET.

Volatility ticked up again yesterday and is elevated.  Expect high volatility to continue today.

Size bias is long into the US session open.


 Posted by at 6:27 am

05/12/2021 ES Trade Plan Worksheet

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May 122021

Market focus is on the 8:30am ET CPI numbers.  Indications of increasing inflation could bring out the bears again on Wednesdays as markets fear the Fed could taper monthly purchases and raise rates to combat rising inflation.

The Fed maintains that any inflationary increases are transitionary, and they will maintain their current course.  Fed governor Clarida speaks @ 9:00am ET.

The Colonial Pipeline shutdown due to a ransomware cyberattack is causing shortages on the East Coast.  In Atlanta, upwards of 20% of gas stations are out of gas and gas station lines are backing up onto highways.

Gas prices have risen to the highest price in 7 years.  The weekly oil inventory report is released @ 10:30am ET.

Earnings include BMBL, WEN, LITE, SONO, POSH, DDS, and VRM.

Volatility remains elevated and expect the same for today.

No Size bias; Size is leaning bullish but there’s not enough volume to be significant.


 Posted by at 5:57 am