Market Outlook for the Week of 6/19/23

Hey, everyone. Welcome to the Traders Market Intelligence Report, brought to you by WealthBuildersHQ.com. This update is for Tuesday. Yes, Monday is a holiday. Tuesday, June 20th, 2023. Hope you’ve had a fantastic trading day. Hope it was a great trading week. And that’s kind of what I wanna recap here, is the week to kind of go over what’s happened there.

So I am showing you right now, this last candle I’m looking at the upper left hand side of my screen up here and when I put my mouse on there, you’ll see that this candle is for Friday the 9th which was last week. And we closed, just breaking outta the rectangle last week on Friday, right? Come Monday, we had a really nice move to the upside. It gave us our biggest gusto, our biggest thrust, pushing us up higher, getting above the rectangle that we had there, that small consolidation pattern. We go one more day, we gap up, we run even higher, we blow through the next Fibonacci level. Here we are on Tuesday, Wednesday, we kind of doji out. We’re back, we’re forth, we’re up, we’re down. Nothing crazy in there. Thursday, woo, baby. We are rocking on Thursday today. I don’t have a candle for today on Omega Chartz there. I’ve got a horizontal blue line, which shows you where we closed right now, which is about that 4409, 4410-ish level. So we pulled back a little bit. Not surprising with the week we’ve had, we’ve had an amazing run this week. We’re talking about a move from 4,300 to over 4,400, over a hundred point move in the bullish direction on the S&P 500. Man, we rocked it without a doubt.

If we go ahead and look at our weekly chart on SPX, you could see what this last week looked like. Now here’s the most interesting component of the week. And again, we’re only looking at this through Thursday, right? We pushed up into that 4442.13 level. What does that mean? Well, what that showing us is we had a ping pong ball, a ping pong trade set up, or ping pong set up pattern between the two fib lines, the .618 and the .764. We just bounced around inside of that level. Great move. Good strong push. Not surprising when you look at the bigger picture, why we pulled back a little bit today. Definitely gotta plan on some profit taking after the move we just made, right? We go back and look even bigger and we go to monthly chart, right…This is our candle for June. Of course, June is not done. We’ve got higher lows setting up in there. And what a strong hard push unless something crazy happens. This will be the first time we broke above the 4181 on a close for this month. Now June, since when was the last time we were even above there, we gotta go back to that long black candle, which is April of 2022. That’s how long it’s been since we had a close on a monthly basis above the black line, that 4181. We might have pressed really close here, last month. Our close was 4179.83. We got close, but no cigar, right? Did not hit it.

If we go back and look at VIX, fear, right? Let’s go look at fear. So I didn’t do the backup on the VIX. You could see where we were this entire week. We had gone a little bit higher on VIX. We pulled back, we bounced a little bit today. Nothing crazy. I mean yesterday, our red line here is our closing price. 13.51 is the close on the VIX today. Now, we are super low, which means directional traders. If you’re buying calls and puts, man, you are rocking it with very low prices on most options. Obviously there are still some overpriced earnings news, certain sectors and so forth. Certain stocks, period, are gonna be overvalued on their options. When it comes to selling, you gotta be a little bit more discerning, a little bit more cautious on picking the right candidate here. Why? Because the VIX is so damn low. Premiums are gonna be down, right?

So overall, I’m liking what I see. I’m liking it, I’m liking it. I’m liking it. Definite bullish move. I announced it last week in pop that we’re looking at directional trades. Now we’ve started adding some of those to our mix. So we’re gonna start checking out and see how the directionals move. All right, there you have. Remember, Monday holiday, Juneteenth markets are closed, right? Three day weekend. Take it easy, relax, chill. Hopefully you got your selling trades in today, so you can take advantage of the extra day of theta burn on Monday. All right? With that, make it a profitable day. Stay focused on the quest of becoming a great trader. Keep crushing it. And remember, remember you just one trade way. Take care everybody. I will see you next week. Have a great weekend. Bye for now.