Yesterday US economy officially showed 2 times in a row of GDP decline which means technically we are in recession. Powell said balance sheet reduction will increase in September for 2 times up to 90 b$ per month.
Market reacted positive because of expectations of FED rates decline in February 2023 that is definitely a good news.
BUT technically there is an opportunity to lower the low in next few months. Setup of trade you can see on screenshot. It gives great risk/reward ratio 4.6 and two arguments for success in this trade:
- economy in recession, company lay off employees and / or reduce the hiring of new ones and QT will increase in Sepmember;
- price is under 200EMA in high RSI momentum which is almost 66.
What do you think? Is it bull trap on bear market or market found its low in the middle of June and now it's gonna be new ATH?
Market reacted positive because of expectations of FED rates decline in February 2023 that is definitely a good news.
BUT technically there is an opportunity to lower the low in next few months. Setup of trade you can see on screenshot. It gives great risk/reward ratio 4.6 and two arguments for success in this trade:
- economy in recession, company lay off employees and / or reduce the hiring of new ones and QT will increase in Sepmember;
- price is under 200EMA in high RSI momentum which is almost 66.
What do you think? Is it bull trap on bear market or market found its low in the middle of June and now it's gonna be new ATH?