Trading Plan for Friday, April 26th, 2024

Trading Plan for Friday, April 26th, 2024

Market Sentiment: Uncertain, with bulls maintaining short-term control but facing the after-hours earnings event, which could bring sudden volatility.

Key Supports

• Immediate Supports: 5067, 5058 (major), 5048

• Major Supports: 5036-33 (major), 5010 (major), 4996-5000 (major), 4935-40 (major), 4904-08 (major)

Key Resistances

• Near-term Resistance: 5080-82 (major), 5092 (major), 5108 (major), 5126-29 (major), 5145-50 (major), 5177-81 (major)

• Major Resistances: 5222, 5243-46 (major), 5272 (major)

Trading Strategy

• Earnings Volatility: Be prepared for unpredictable price action and adjust your strategy in real-time.

• Trading the Range: Expect price to play within the broad 5036-5126 range. Exercise caution and consider bids/shorts within the range rather than chasing direction.

• Long Opportunities: Look for failed breakdowns at 5067 or 5058 after earnings. Focus on bids cautiously within the range, prioritizing the knife-catch protocol for deeper longs at major levels.

• Short Opportunities: Look for backtests of 5126-29, 5145-50, or the major 5177-81 zone if reached. Given earnings, approach shorts very cautiously.

• Profit-Taking: Use level-to-level profit-taking on any position taken, given the increased volatility risk.

Bull Case

• Holding Support: Defending the current 5036-33 major support is critical.

• Reclaiming Resistances: Bulls need to push above the 5108 zone for a potential run to the next major target areas of 5126-29 and 5145-50.

Bear Case

• Breakdown Signals: A convincing break below 5036 triggers the downside move. As always, be wary of traps – look for a bounce/failed breakdown first, then consider shorting with level-to-level profit-taking.

News: Top Stories for April 26th, 2024

Economic Environment

• March PCE inflation report and its impact on the Fed's policy decisions.

• Apollo Global's acquisition of US Silica and implications for the materials sector.

Stock Market Updates

• Mixed signals from global markets amidst geopolitical tensions.

• Bank of Japan's interest rate policy.

Global Market News

• Market response to various corporate earnings and announcements.

Additional Market News

• Bond market dynamics and potential interest rate cuts.

• Gold's performance and investment implications.

• Currency market updates and the impact of the Bank of Japan's actions.

Additional Market Insights and News

Economic Indicators and Outlook

• US GDP and Economic Growth: Analysis of the latest GDP report and its implications for growth trends.

• Corporate Earnings Outlook: Forecasts for 2024 and sector-specific performance expectations.

• Inflation and Interest Rates: Understanding the relationship between inflation, Fed policy, and corporate earnings.

• Labor Market Dynamics: Assessing the health of the labor market and its impact on consumer spending and corporate profitability.

Technological Advancements and Market Shifts

• Generative AI and Business Transformation: How is GenAI impacting decision-making and efficiencies in various industries.

• Quantum Computing and Competitive Edge: Exploring the potential of quantum computing in various sectors and its implications for competitive advantage.

• Sustainable Technology Initiatives: The increasing focus on green technologies and the integration of sustainability with innovation.

• Industry Cloud Platforms (ICPs): Examining the adoption of ICPs and their role in accelerating digital transformation.

Reminder: The after-hours earnings events introduce major volatility risk. Prioritize risk management and adapt your trading strategy accordingly.