2/6 Tuesday Trading Plan

6 Feb

📊 Market Sentiment: Neutral to Bearish

• Economic Positivity vs. Recession Risks: Ongoing discussions about potential economic slowdown amidst optimistic indicators.
  
• U.S. National Debt: Concerns over $34 trillion debt and its sustainability.
  
• Gold Prices: Driven to all-time highs by geopolitical tensions, banking uncertainties, and Fed's interest rate policies.
  
• Layoffs and Job Market: Over 720,000 layoffs signal caution among employers.
  
• Housing Market: Expected slight increase in median home prices.
  

📝 Today's Recap:

• Housing Market and Fed Policies: Fed's steady interest rates amid rising housing costs.
  
• China's Stock Market: Rally following government's increased stock purchases.
  
• Corporate Earnings: Meta's earnings growth and dividend introduction.
  
• Banking Sector: AI's transformative potential in banking for 2024.
  

🌍 Global Financial and Economic News:

• Investment Trends for 2024: Forbes highlights AI's impact on the financial sector.
  
• Financial Market Outlooks: Diverse predictions for 2024, from stock valuations to GDP expectations.
  

📉 Support Levels to Watch:

• 4965, 4954, 4947 (Major), 4942, 4930, 4915, 4908
  
• Notable for potential bids: 4930 and 4908-4915 cluster.
  

📈 Resistance Levels to Watch:

• 4970, 4986-4990 (Major), 5018, 5028-5033
  
• Key for potential shorts: 4986-4990 and 5028-5033 zones.
  

📅 Trading Plan for Tuesday:

• Approach: Conservative post-rally strategy, focusing on high-probability setups within the new base range.
  
• Bull Case: Maintain supports at 4965 and 4947 for base building; target upward moves to 4990 and beyond on breakouts.
  
• Bear Case: Watch for failure at 4947, signaling deeper retracement; consider shorts on breakdowns with tight risk management.
  
• Tactics: Emphasize level-to-level trading, particularly around 4965 and 4947 supports, and 4986-4990 resistance for potential reentries or reversals.
  

🛑 Disclaimer:

This analysis is for educational purposes only, not financial advice. Market conditions are dynamic; consult a professional before making trading decisions. Risk management is essential.