Updated: Oct 16, 2021
What happened in the Market?
Wow! We nailed the breakout in the market, as mentioned in my previous newsletters, the SPY was forming a Wedge pattern that tends to be Bullish in nature and has about a 70% success rate. The SPY broke out of the pattern on Thursday and continued higher on Friday.
What caused the breakout?
The breakout occurred with a culmination of great news from different factors around the economy. One, the jobless claims were low when compared to estimates. That means that more people are back at work and are now contributing to the overall economy. Two, all of the financial sector which includes: Citi (C), Wells Fargo (WFC), JP Morgan (JPM), Bank of America (BAC), among others, had a massive earning beat. That means that they beat analyst estimates by a mile with huge revenue and outlook growth potential. Three, the CPI (Consumer Profile Index) report was slightly off and not as bad as estimated. All of these factors were part of the catalyst that took markets flying.
So what's next for the markets?
The next main event that can possibly affect the market's direction is the tapering of economic stimulus packages, the COVID variant, and an increase in interest rates. We will see what the fed will do with the stimulus and the rates in mid-November so, for now, we'll enjoy where the market's headed and reap the benefits of trading in a bullish environment.
by Jose Navarro on October 16, 2021
**This newsletter is intended for educational and entertainment purposes only. Pennystocksclub13 intends to educate beginner traders with easily accessible and simplified information to shorten the learning curb. Traders should always do their due diligence and continue educating themselves about the risks involved with trading.
All charts courtesy of Thinkorswim platform. Pennystocksclub13 is not affiliated withThinkorswim.
Disclaimer: Results may not be typical and may vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk!