Market Milestones: The Traders Plan Weekly Review

[Image] Good morning ! I know the bears out there are excited after Thursday's close and I can see why. First of all, we had a really solid gap and go that for once actually goed, at least a little. Second, we could be forming a little double top that could lead to a more selling if we can break $405 on the SPY. And last but not at all least, for the first time in awhile, bearish news and terrible economic numbers did not lead to a full on bull rally. That has to improve the bears mood at least a little. Let's run though just a touch of that economic data. On Tuesday we got the all so important January CPI. The numbers came in hot at 6.4% which is above the consensus 6.2%. The month over month inflation actually went up .5% which is certainly not what the Fed wants to see right now. The market rallied on this news, frustrating and trapping bears. That is a great reminder of the value of trading price action first and foremost and not the news. On Thursday the PPI came out which measures the producer side, which in theory should lead the consumer side of inflation. Those numbers also came in hot at 6% vs the 5.4% census. The month over month was also .7% vs .4%. With this latest inflation data and the strong labor market, the Fed will most likely need to keep rates higher for longer. Before the bears get overly excited remember how much we have run this year on most stocks. Some variety of pullback is very much in order. SPY is still an inside week and actually is still positive on the week at the time of this writing. We are far from the crash the bears are predicting. [QQQ Weekly Chart]( [SPY Weekly Chart]( ETF of the Week Our ETF of the week this week is SPDR S&P Semiconductor ETF (XSD). You can learn more about this ETF [here.]( XSD looks especially intriguing because it could possibly be played bearish down to the buy zone where you could then flip long for pyramid style trade. Let's check out the charts. Starting with the weekly chart, you have as pretty of a inverted head and shoulders as you will ever find. It bounced perfectly off of the 200Wsma and has since closed strong above the 100Wsma. The neckline of that inverted head and shoulders also lines up very will with that 100Wsma. However, we did have 6 weekly candles in a row with huge bullish volume coming in on that 6th week. Since then we have moved sideways and are creating a large pendant pattern. If that pattern breaks down we could get the retest into our buy some that we are looking for as well as an opportunity to play it short for a quick win. [XSD Weekly Buy Zone]( [XSD Daily Chart]( Trade with a PLAN! Sincerely, The Traders Plan Team support@thetradersplan.com Disclosure: You are responsible for your own trading decisions. ALWAYS, do your own research before investing in any of the above securities. This is not a solicitation to buy/sell ETFs or securities. NEVER invest money in ETFs or stocks that you can't afford to lose. You can lose all of your capital by trading any securities mentioned. These ETFs/securities are very volatile and gain and lose value quickly. We reserve the right to freely trade in any mentioned ETFs or securities. We are not compensated by any mentioned companies. We trade ETFs and securities based on our opinion of intrinsic/possible future value only. We are not registered investment advisors, so always do your own research before buying any securities. Unable to view? Read it [online]( If you no longer wish to receive mail from us, you can [unsubscribe]( Sent from: Real Life Trading in Nashville TN 37221