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Tuesday March 25th
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“The function of prayer is not to influence God, but rather to change the nature of the one who prays.”
– Kierkegaard
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Howdy folks! Gonna be a shorter one today.
SPX closed above the 200DMA moving average yesterday and is up premarket.
The 200DMA is still the support line today. While 5843 or so is resistance.
Volatility is dropping down again. This is bullish for equities. The Yen is up though, which could be problematic.
Yesterday, Trump announced that the 25% tariffs will be slapped onto Venezuelan oil, as well as any countries that buy Venezuelan oil. This should be good for oil producers like OXY, SHEL, BP, and the like. Yesterday, I recommended OXY, and I think from purely technical perspective oil is a good sector to focus on right now.
Despite many of the calls that we were in a bear market, so far that is’t true. OPEX was last week, now we’re firming up a strong bull trend heading into this month’s OPEX. Because of these factors, I believe we may be in a “buy everything zone.”
I would be wary of shorting things right now. At least until April 2nd, when Trump’s reciprocal tariffs are set to take place. There is much confusion on what these tariffs will mean; what will be included; and if they will actually happen at all.
For these reasons and more, April 2nd will most likely be a day I sit out of the markets. However, up until then, it looks like we may head higher.
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Testimonial of the day
Jim T. about Bargain Bin Trader:
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To Better Trading,
Alex Reid
