Charles Green here, Senior Market Analyst here at Traders Agency.
Here’s today Market Pulse 360.
Market Pulse 360 for August 25, 2023
What happened yesterday?. The market was very strong in the morning on the heels of NVDA earnings, but then it rolled over and died.
There were three converging factors:
- Profit-taking on a blockbuster quarter by NVDA;
- The Jackson Hole Fed speech today and fear of a repeat from last year;
- 10-year Treasury rates still above 4% (kryptonite for the market); and
- Fear of a recession coming.
It’s almost as if the market is trying to create a self-fulfilling prophecy of recession. All of these events are temporary, but the market technicals, once again, broke down.
The good news is that we are not far from the 50-day moving average, just 46 points from major support at 13,500 on the NASDAQ. The “data dependent” Fed’s speech today will determine how the market performs in the short run.
Keep in mind, volatility = opportunity, so as long as the market remains in an uptrend.
Nothing that happened yesterday has changed the trajectory of the market; we’re still above the YTD trendline and 1500 points above the 200-day moving average on the NASDAQ.
We also had normal volume yesterday on the NASDAQ. Earnings overall have been good, especially NVDA, but the market doesn’t care right now.
The two most important things that you control is patience and positioning. While you want to protect against downside risk in the short-term, you should not close your eyes to the opportunities in the bigger picture.
We are in a better place than we were last year at this time, and the market has overcome multiple challenges over the past year to get where we are today.
There is still a lot of opportunity ahead, and there are some great opportunities being created now with the selloff yesterday.
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A Bit More About Me
My specialty is understanding financial markets and the drivers that influence longer-term direction. I’ve been an active trader focusing primarily on stocks for over 20 years.
I’ve also:
- Been an adjunct finance professor for nearly 20 years
- Worked as a financial consultant with Merrill Lynch managing millions of dollars
- Earned a Master of Science Degree in International Business and Finance from Georgetown University and a Bachelor in Arts Degree in International Studies from George Mason University.
- Spent 14 years as a Marine (I enlisted at age 17) traveling all around the world
My education, work and life experience gives me a broad view of the world, financial markets, and life in general that informs my trading and investment decisions.
My passion is helping others to take advantage of the best market opportunities to achieve their financial goals.
This gives me the greatest satisfaction, and it’s the reason why I continue to teach in the classroom and outside of it today with every activity in which I engage. I believe that I succeed only if clients succeed.
I am a very unlikely success story. And this is only because I believe that anything is possible with the right knowledge, focus, and winning mentality! When you have that, success is just a matter of time.
Charles Green
Senior Market Analyst, Traders Agency
