Mr. Fibs - March 3rd Market Analysis

Gap and Go...or Gap and Trap

Happy Friday to all newsletter subs! This week has been an amazing launch of this publication. If you have been reading and think my insights have been helpful, I would greatly appreciate a comment below on today’s post. Whether you are a free subscriber or a premium subscriber, I would like to thank you dearly for the exponential growth of this publication and these write-ups.

Today, SPY 0.00%↑ looks to open with a gap up. At the moment of me writing this, the premarket session has us trading just above that major $400 level. For those of y’all that took my $SPY alert in the Substack chat a couple of days ago, this is wonderful if you have remaining contracts/runners. I will be scaling half of what I have left since there is PMI data at 9:45 AM. Whether you are in positions already or want to trade the open, you must keep this in mind.

Key things to remember this morning are the following:

1. Even though we anticipated the oversold bounce on the daily, we have not seen confirmation of higher lows on the larger time frames

2. 400 is a key psych level so far this year, so we must stay grounded in reality and trade the price and volume the market delivers us.

In addition to PMI, we have several FED Speakers scheduled today. Bostic at 11:45 AM EST, Bowman at 3:00 PM EST, and Barkin at 4:45 PM EST. There is also Dallas Fed president Logan speaking at 11 AM EST as well.

In a previous newsletter, I mentioned that gap ups have “consistently been met with weakness.” I believe even with this gap up, the onus is still on bulls to follow through with real volume and strength on SPY 0.00%↑ and QQQ 0.00%↑ . This is the case for a continuation or a pullback. The key for me today is the performance of the largest market cap names and if they are willing to support this move we had from the most recent market swing low. 

The levels and names I am watching today are available exclusively to premium members.