Talk is cheap
When it comes to the Middle East, American and Israeli leaders keep serving up reassuring soundbites. But their words carry less weight than a penny stock tip when you look at what’s actually happening on the ground.
“This war will end much faster than expected,” Israeli PM Benjamin Netanyahu said yesterday. Sound familiar? That’s because Trump was singing the same tune on March 9, telling CBS News the war was “almost over.”
These soothing words might give investors a quick sugar rush, but reality keeps crashing the party. The war just entered its third week, the Dow Jones has sunk to yearly lows, and we’re staring down the barrel of a fourth straight week of losses.
With today’s quadruple witching — when futures and options on stocks and indices all expire at once — expect some serious chop in the markets.
The retrospective
Buyers came out swinging at the open, trying to push past yesterday’s highs [1]. No dice. Short sellers counterattacked toward Daily Support 1 and scored direct hits [2][3].
Today's trading plan
This content is not investment advice. I’m sharing this trading plan purely for educational purposes, to show you how one trading veteran among many prepares and thinks through the market.
Short sellers still have the wheel. They nailed their main target at Monthly Support 3 (46,321 points) and now have Monthly Support 4 (45,083 points) in their crosshairs.
Despite the selling pressure, shorts remain cautious while buyers stay oddly optimistic — suggesting this move has room to run.
That said, we hit the buyers’ killzone yesterday. A short-term bounce is back on the menu until more buyers get trapped (possibly if they get too excited above resistance at 46,624 points).
Given this setup, I’m still favoring short trades, but I’m taking profits quickly at key intraday levels. No point getting caught in a bounce.
Happy trading!
Maxime holds two master’s degrees from the SKEMA Business School and FFBC. As founder and editor-in-chief of NewTrading.fr, he writes daily about financial trading.
Peace pipe
Dogs bark, caravans move on
Good signs