Afternoon Notes - 3/16/2022 | Archimedes Methodologies

I have been reflecting on the death and funeral of Patriot Rich Higgins today. With a US Government resume nearly a mile long, this National Security Council staffer was the first to blow the lid off the deep state cabal working to unseat President Trump barely four months into office in 2017.
It is easy to see the thread running through all of these recent events – from the China Virus to the events in Ukraine. Reading the memo today makes a grown person want to cry over the purposeful destruction of our Country.
Having barely recovered from reading Rich’s memo, I ran across this March 10th report from Dr. Peter Pry, Executive Director of the Congressional EMP Task Force on National and Homeland Security. His assessment of our nuclear capabilities vis-a-vis Russia is sobering and blew a lot of my assumptions out of the water. Better to read this in the morning, not before you go to sleep.
As predicted, we had continued the impressive short-covering rally today, and the market closed above the 21-day and minor wedge downtrend line, breaking above the falling wedge pattern.
We closed above the WEM High at 4318, and there is a 70% chance that level will draw the market back down into Friday’s close.
The breadth was strong enough today that it nearly qualifies as a breadth thrust, so maybe this will be the outlier where the WEM High fails to hold this week, but I am not willing to bet against it.
I cannot recall a market holding up so well in the face of some of the worst sentiment I can remember since 9/11.
I am more impressed with the 2/24 low holding through this fear than with the short-covering rally. We discussed the importance of the 2/24 low back at the end of February and predicted the low would be secure, at least on an intermediate basis.

As you will observe above, the Navigator Algorithm rolled into a buy signal at 4256 for the Navigator Swing Traders™. The stops on the dashboard are set as the labels turn green.
The leveraged accounts bought an Emini and exited at the close. The cash accounts took a 75% SPY cash position.
The next stop is the Primary Downtrend line, and there will be complications as we roll into Quadruple Witching, an event we experience only four times a year.
The compression of volatility post the Fed’s quarter-point rate increase, coupled with expiration pressures, has manifested with a bullish outcome.
While the Federal Reserve gave a good report on an improving economy, they came off less supportive of equity markets today. As a result, the expiration and covering of a large swath of these put hedges may place the market back into an “underhedged” position after expiration.
If there was to be renewed demand for protection and a continued real-money selling post options expiration, we could experience a rapid flush lower, potentially.
Let’s enjoy the ride, but markets are fragile, so stay cautious.
Click the button below if you want to learn more about the Navigator Swing Trader strategy and subscriotion.

A.F. Thornton

Word of mouth is crucial for growing our trading community and providing education and support for your trading decisions. Please feel free to share this with your friends and family if you find the information beneficial.

Afternoon Notes – 3/16/2022

Afternoon Notes – 3/16/2022

AF Thornton

Subscribe!

Afternoon Notes – 3/16/2022

Related Posts

Subscribe!