Bear market rally or stock market bottom? Form your trading plan with Wyckoff method [Video]

Ming Jong Tey Independent Analyst

Has the stock market hit the bottom or is this a bear market rally to trap the bull? The bullish momentum bar reacted the CPI on last Thursday marked a significant milestone in S&P 500.

Watch the video to find out how you can form a sound trading plan with the Wyckoff trading method to ride on the trend on either direction at these key levels.

The bullish setup vs. the bearish setup is 455 to 57 from the screenshot of my stock screener below.

It is essential to pay attention to the price action and volume in S&P 500 and to identify a Wyckoff change of character for early detection of potential trend change.

Meanwhile, these are many outperforming stocks trending up as shown up in the stock screener despite the choppiness formed in the indices. Do look for strong relative strength as shown up in the individual stocks when identifying the winning stocks for swing trading.

Author

Ming Jong Tey

Independent Analyst

Ming Jong Tey has been trading since 2008. He started his learning journey from technical analysis (indicators, Fibonacci, etc...) to value investing. Throughout his journey, he develops an interest in price action with chart pattern trading.

GBP/USD declines as market caution lifts US Dollar

GBP/USD extends its gains for the second successive day, trading around 1.3200 during the Asian hours on Wednesday. The currency pair depreciated as the US Dollar gained momentum, driven by a combination of robust domestic economic data and a complex, mixed geopolitical landscape.

EUR/USD hits one-year low, eyes 1.1350 as bullish USD offsets oversold RSI

The EUR/USD pair drifts lower for the third straight day – also marking the fifth day of a negative move in the previous six – and drops to over a one-year low during the Asian session on Wednesday. Spot prices currently trade around the 1.1365 area, down nearly 0.15% for the day, and seem vulnerable to slide further amid a bullish US Dollar.

$4,050: Gold dives to fresh two-week low as Fed rate hike bets boost US Dollar

Gold drifts lower for the second straight day – also marking the fifth day of a negative move in the previous six – and drops to a nearly two-week low during the Asian session on Wednesday. Despite easing inflationary concerns in the face of the recent fall in Crude Oil prices, traders have been pricing in a greater chance of a rate hike by the US Federal Reserve.

Bitcoin under pressure, Ethereum loses key support, XRP momentum weakens

Bitcoin, Ethereum and Ripple remain under pressure on Wednesday after falling slightly the previous day. BTC trades below $63,000, ETH slips below $1,700, while XRP momentum continues to weaken. The deteriorating price action in these top three cryptocurrencies suggests a potential continuation of the near-term correction.

"Rearranging the deckchairs on the Titanic": UK's fiscal crisis outlasts another Prime Minister

Keir Starmer's resignation as the UK Prime Minister comes ten years after the Brexit referendum vote, a coincidence that financial markets have been quick to note. The British Pound trades around 1.3220 against the US Dollar on Thursday.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.