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#trading

11 posts7 participants0 posts today

In today's edition of "more fun ways to examine the stock market", everyone is asking if we've found a bottom yet. I have no idea, but we can look at some trends to give us an idea on probabilities.

Before some *nerdy* charts, let's explain moving averages.

This chart has two moving averages in the middle pane. Blue line is 50 day moving average and red is the 200 day moving average. These lines smooth out price action and highlight trends.

Continued thread

To make matters worse, technology stocks are HEAVILY concentrated in most indexes and ETFs, but they peaked in strength in July 2024.

This means that when technology stocks move a little, the market moves a lot. A 1% move in NVDA will move the market much more than a 1% move in GIS (General Mills; think cereal).

Remember the August 2024 dip? That's likely when the smarter traders started plotting their exit plans.

The stock market doesn't look like it has regained its footing quite yet. One of my favorite lenses to view the market is comparing the two ETFs XLY and XLP.

This is a comparison of things you want (XLY) versus things you need (XLP).

When this chart moves up, growth stocks usually do pretty well. When it heads down, it's a sign that traders are pulling back to safer bets.

(Not financial advice)

Continued thread

Since #Trump’s election, #Canada has been increasingly aligning itself more closely w/partners across the Atlantic, seeking to diversify #trading partners & #defense #allies away from its core relationship w/the #UnitedStates.

In a document prepared by the #EU to lay out the plans for its #defense initiative, Canada was explicitly mentioned, hinting to the talks to absorb the country into the EU #military industry project.

**Balance**: 113.90$ ⬇ -7.45
**PnL**: -77.50 ⬇ -7.52
**MDD (7 days)**: 50.33%

Friends, you see the trading results. I continue to find the best options. When the best one is found, I will still improve it. This is a very resource-intensive process. Don't stay aside, support me in any way you can: Like, promotion, subscription, or coffee, link in profile. If you buy me a coffee, I will definitely drink it in your honor with a photo report. I love you, I love the world, and the Creator! ❤️🌍🙏

Watching some huge trades go by in long term government treasuries, mortgage backed securities, and high yield (junk) bonds. 😬

I have a feeling the US market is less stable than I thought.

(Not investment advice but food for thought.)