NPP Trades Daily Recap 6.2.22
The Quick Recap:
It was a nice day today for NPP Traders. SPY came back down to that important 407/405 level we mentioned yesterday and held. We added to our SPY positioned and then saw a massive bounce higher, closed at the high of the day, and broke above the bull flag confirming a likely move to the light blue downtrend line on the chart below in the low 420’s. After we hit that line, we’ll need to see how the market reacts to the next pullback. Do we get a higher low, then make a higher high? If so, there is a chance the bottom is in. Or, do we sell off through the critical “bulls must hold” 390 level? If so, I think we head to the low 370’s.
So, the big test is coming for this market. Next CPI number is coming June 10th. I plan to be very light heading into that number. That data point will likely drive the next big move in the market. And if it is a down move, we’ll see if the market buys the dip and puts in a higher low or not. That will tell us if this market is still in the bear, or if this bear is over and it’s time to start positioning for all time highs. Let’s see what happens.
The More Detailed Recap:
(Paid subscribers, below is an update on all current positions with charts as well as new ideas. Enjoy!)