Trading insight: Ignoring the headlines, pro traders focus on price
Market Talk
Price is a leading indicator.
- If prices are moving up, must the fundamentals be positive?
- If prices are moving lower, must the fundamentals be negative?
As of May 23 2023 6:49 UTC
Political risk:
The US debt deal moved closer to an agreement, with both sides of the table clearly wanting a deal.
- US President Joe Biden and House Speaker McCarty had a meeting; McCarty said that the meeting was “productive”.
- The Republican side wants big spending cuts because republicans favor smaller government while the Democrats as usual want bigger government and more money to hand out to the “people”.
Bottom line: The debt ceiling must be increased but there is no need for a bigger government. Professional investors and traders "reading between the lines" have been feasting on the current opportunities.
Today’s economic calendar
UK Government net borrowing increases
- Higher payouts for benefits
- Higher cost for paying interest on loans
Source: Tradingview / J. Knobel May 23 2023 6:33 UTC
Tactical trading point of view
What is tactical trading?
When a trader believes in short term market trends and actively positions trades to capture those trends rather than buying and holding.
Tactical ideas and commentary for speculative trading:
- SPX500 Index further upside prospects remain on the table, current price $4,191 with resistance at $4,250, a break above $4,250 could be viewed by many technical traders as a bull market trigger event that has potential to take the price to test the 52 week high near $4,325. Downside risk below $4,060 could signal the end of the March - May uptrend (see blue trendline on chart).
Capitalise on volatility in index markets
Take a position on moving index prices. Never miss an opportunity.
Not investment advice. Past performance does not guarantee or predict future performance.