Weeks Review into W/C 3rd October 2022-Post EOQ

Weeks Review into W/C 3rd October 2022-Post EOQ

October 2, 2022 0 By The Balanced Trader

Last Weeks Summary

Weeks Summary

U.S. equity markets tumbled on the last trading day of September in a broad-based decline after the Commerce Department’s latest PCE Price Index report showed the Federal Reserve’s preferred gauge of inflation accelerated more than expected in August. The S&P 500, Nasdaq, and Dow all dropped over 1.5%. In a statement on Friday, Fed Vice Chair Lael Brainard said the central bank remains committed to tightening monetary policy to curb inflation and warned against “pulling back prematurely.” The three major averages closed out the week, month, and quarter lower. For the month, the Dow fell 8.8%, the S&P lost 9.3% and the Nasdaq was 10.5% lower.

IHS MARKET week ahead report

Events Calendar:

KEY TAKEAWAYS

  • Reports on the U.S. jobs market could show how well the labour market has held up against the Fed’s rate hikes to curb inflation.
  • The US week kicks off with PMI and ISM surveys and ends with the employment report, providing plenty of fresh insights in the economic growth path and inflation trends.
  • On Tuesday, the Labor Department will release its JOLTS report for August.
  • ADP’s National Employment Report for September will follow on Wednesday.
  • On Friday, the Labor Department will release its nonfarm payrolls report for September.

Events Calendar:

Monday, October 3

  • S&P Global Manufacturing PMI – Final Reading (Sep)
  • ISM Manufacturing PMI (Sep)
  • ISM Manufacturing Employment Change (Sep)
  • Construction Spending (Aug)

Tuesday, October 4

  • Acuity Brands (AYI) and Novagold Resources (NG) report earnings
  • JOLTS Labor Market Survey Report (Aug)
  • Factory Orders (Aug)

Wednesday, October 5

  • Lamb Weston Holdings (LW) and RPM International (RPM) report earnings
  • ADP Private Sector Payrolls (Sep)
  • U.S. Balance of Trade (Aug)
  • S&P Global Services PMI – Final Reading (Sep)
  • ISM Non-Manufacturing PMI (Sep)

Thursday, October 6

  • Constellation Brands (STZ), McCormick & Company (MKC), and Levi Strauss (LEVI) report earnings

Friday, October 7

  • Nonfarm Payrolls (Sep)
  • Wholesale Inventories (Aug)

Weekly Review

Weeks Price Action Review

Why look at the Weekly and Monthly?

Using the composite profiles gives me a lot of clarity in understanding the market. Understanding the story and the basic mechanics of what is going on simplifies almost every other aspect of my trading, especially timing.

By identifying areas of balance/ acceptance in the auction I have a natural edge. I can identify value and the pivots of change. In balance I look to fade the extremes, when activity leaves an area of acceptance, I monitor for strength and conviction of the move. For this, I use volume and value as a guide. As a general rule, if a move is genuine, volume and value will move in away from prior acceptance to a new area.

Monthly Profiles

Monthly Profiles- OTFD

Notable Tweets

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UPDATE: