Market analysis for May 7th, 2024

Good morning traders! As I mentioned yesterday, our finish to last weeks trading was fantastic. That's great but it also returns a bunch of our capital to us. We re-deployed a lot of it yesterday. 28 total trades! Things should calm down for us today.

Trade docket for today: /NG, CVS,DIA, DIS, DJT, IWM, LITE, META/TSLA pairs trade, SPX/NDX/Event contract NDX/Bitcoin 0DTE's., NVDA, PFE, SPY/QQQ 4DTE, WOOF and four potential earnings plays on RIVN, LYFT, TWLO, TOST.

Let's take a look at the markets:

All the major indices we trade reclaimed their respective 50DMA. This was a big step for the bulls however, its now placed all the markets right back into a major consolidation zone. I don't expect much out of the market today and am starting the day with a neutral stance.

​Optimism that the Federal Reserve will begin cutting interest rates this year, combined with a string of positive results, drove stocks and bonds higher this morning.
Oil erased gains from yesterday following reports yesterday that indicated the potential for progress on ceasefire talks between Israel and Hamas.
The Australian dollar underperformed following the RBA rate decision last night, where rates were left unchanged, as expected, repeating that nothing is ruled in or out in terms of future moves.

Docket
12:00 ET (Tentative)
The EIA releases the latest Short-Term Energy Outlook report.
13:00 ET
US sells $58 bln 3-Year Notes
15:00 ET
US Consumer Credit for March
Median Forecast: 15B | Prior: 14.12B | Range: 20B / 5B

Speakers
09:00 ET
ECB’s de Cos speaks at the BIS Summit
Watch Here
10:00 ET
ECB’s Nagel speaks at a panel discussion titled “Empowering the Single Market – Opportunities and challenges”
Event Details Here
11:30 ET
Fed’s Kashkari participates in a fireside chat at the Milken Institute Global Conference.
No indication of whether a text will be released, but a Q&A is expected.
Watch Here
ECB’s Nagel gives speach in Oestrich-Winkel at the Joint Spring Conference 2024 – Structural Changes and the Implications for Inflation
Register Here

Intra-day levels for me:
/ES; 5213/5242/5252/5283 to the upside. 5171/5155/5146/5103 to the downside.

/NQ; 18209/18327/18443/18608 to the upside. 18145/18108/18057/18025 to the downside.

Bitcoin; No levels or planned Bitcoin trade today unless we get movement. Yesterday we had a successful Etherium 0DTE to replace the BTC trade. Neither one of them look to have very good risk/reward ratios for today.