2/13 Tuesday Trading Plan

Feb 13

📊 Market Sentiment: Neutral to Bearish

Catalyst:

• The latest CPI results will be released this morning at 8:30 AM (EST).
  

U.S. Economic Projections:

• Congressional Budget Office (CBO): Forecasts slower economic growth in 2024 with unemployment rising due to tight monetary policy, but expects growth rebound in 2025 as Federal Reserve lowers interest rates.
  

Global Stock Market Movements:

• Fluctuations observed with the S&P 500 reaching record highs, driven by optimism and big tech performance. Nikkei 225 also sees significant gains.
  

Interest Rates and Inflation:

• Inflation easing may lead Federal Reserve to begin rate cuts later in the year, fostering hope for resolution against inflation.
  

Investment Trends and Strategies:

• Trends focus on AI's impact on finance, performance of digital and cryptocurrencies, and outlook for tech and ESG funds.
  

AI in Finance:

• Vanguard incorporates AI into quant stock funds, highlighting the trend of AI integration into investment strategies.
  

International Developments:

• Prime Minister Narendra Modi's engagements in the UAE and Qatar aim to deepen bilateral ties.
  

Corporate Bonds and Insurance:

• U.S. investment-grade corporate bonds expected to offer impressive returns in 2024, while insurers may focus on margins over growth.
  

UK Market and Employment:

• The UK's unemployment rate falls, indicating a tight job market. Wage growth and unemployment trends remain critical.
  

📈 Trading Plan for Tuesday:

Support Levels to Watch:

• Critical Supports: 5034, 5018-20, and 4959, indicating pivotal points for maintaining bullish momentum or indicating potential bearish shifts.
  

Resistance Levels to Watch:

• Key Resistances: 5048-50, 5057, and 5070-76, serving as potential targets for upward movement or reversal points for bearish trends.
  

Trading Strategy:

• CPI Day Caution: Emphasize capital preservation, acknowledging potential volatility from CPI data release.
  
• Bull Case: Focus on holding above 5018-20 for bullish continuation, eyeing targets at 5057 and 5076-80.
  
• Bear Case: Watch for breach below 5018-20, indicating a shift towards bearish sentiment and potential deeper sell-off.
  

Tactics:

• Emphasize disciplined trading within identified support and resistance levels, with cautious engagement in new positions given expected market volatility from CPI data.
  

🛑 Disclaimer: This analysis is for educational purposes only and is not financial advice. Always consult with a professional financial advisor before making trading decisions.