Outlook 07/20: Trump blasts Powell’s rate hikes, trespassing on Fed’s independence: President Donald Trump criticized the Federal Reserve’s interest-rate increases, breaking with more than two decades of White House tradition of avoiding comments on monetary policy out of respect for the independence of the U.S. central bank.
/ESU8 Value: YVAH 2810 YPOC 2808 YVAL 2804
/ES Plan: Yesterday closed balanced and Overnight looks slight bearish, moving below Yesterday's range, so we've these options:
A) If market remains below YLOD 2800 with bearish internals, try to sell leaning on 2800 towards ONL 2793 HVE 2789 and LVN 2781. 'Look above and fail' is a bearish signal.
B) If market starts to move above YLOD 2800 with bullish internals, become a buyer above 2800 towards GAP 2805.75 and ONH 2810.50 'Look below and fail' is a bullish signal.
Tips: I share this trading process everyday, using Volume Profile and Market Internals. First, define the Bull/Bear Line in the Sand (LIS).
Second, watch volume profile skew, and wait for a bullish 'p' or bearish 'b' imbalance. Third, watch ES VWAP slope, rising (bullish) or falling (bearish). Fourth, wait for a lean near LIS-VWAP-VAH-VAL. Best entry is as close as possible to these key levels. Finally, wait for ES price action and SPX internals correlation to confirm decisions about entries/exits.
Today's Economic Calendar
1:00 PM Baker-Hughes Rig Count
Disclaimer: All information on this outlook is for educational purposes only and is not intended to provide financial advice.
Questions? Just ask via email or twitter @verniman direct message.
