{"id":21386,"date":"2023-11-22T07:30:29","date_gmt":"2023-11-22T12:30:29","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=21386"},"modified":"2023-11-22T07:30:29","modified_gmt":"2023-11-22T12:30:29","slug":"why-the-weekend-is-crucial-to-traders","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/why-the-weekend-is-crucial-to-traders\/","title":{"rendered":"Why the Weekend is Crucial to Traders"},"content":{"rendered":"

Most people look forward to the weekend.<\/p>\n

It gives them an opportunity to rest and recharge before going back to work.<\/p>\n

But for traders, it’s a little different. The weekend is where a trader should be the most productive.<\/p>\n

That period between Friday evening and Monday morning is crucial. It’s a time to look at the markets while they’re closed.<\/p>\n

When prices aren’t flying around, you can spot opportunities you normally wouldn’t. That’s why I love using the weekend to build my watchlist for the upcoming trading week.<\/p>\n

One such opportunity I happened to spot this weekend was the iShares Emerging Markets ETF (EEM).<\/p>\n

To be frank, I haven’t paid much attention to emerging markets over the last year. That’s because inflation has been a major headwind for emerging market ETFs like EEM.<\/p>\n

Rising inflation has resulted in interest rate increases. This, in turn, has resulted in a relatively strong dollar. And a stronger dollar can be a big weight holding emerging markets down.<\/p>\n

But the dollar is setting up for a steep decline<\/a>. That could be a big boost that will help EEM sustain a major rally.<\/p>\n

This kind of fundamental analysis is great at supporting a longer-term investment thesis. But for a shorter-term trade, the price chart has to look good too.<\/p>\n

And that’s what makes the current setup in EEM so enticing. EEM has just recently broken above its 20- and 50-period moving averages (MA). These MAs are ideal for measuring short- and intermediate-term trends.<\/p>\n

Breaking above both MAs is a positive sign. It means there’s bullish momentum in the market. And given the larger chart pattern EEM is trading within, it also allows us to calculate a high-probability target.<\/p>\n

Take a look…<\/p>\n

<\/p>\n

\"Image\"<\/p>\n

EEM is trading within a larger bull flag. Prices are currently around the middle of the flag pattern.<\/p>\n

The bullish momentum means we’re likely to test the upper resistance line of the flag over the coming days.<\/p>\n

The upper resistance line comes in around $41.65 (upper blue line). EEM should go on to test this level.<\/p>\n

After testing the resistance line, we could see a pullback. Think of pullbacks like a runner needing to take a break after an all-out sprint.<\/p>\n

When a market sprints hard to reach a certain price level, it’s guaranteed you’ll see a pullback. These kinds of sprints usually require a lot of buying power.<\/p>\n

<\/p>\n

\n
\n

Free Trading Resources<\/strong><\/p>\n

Have you checked out Jeff’s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just click here<\/a> to check it out.<\/p>\n<\/p><\/div>\n<\/div>\n

<\/p>\n

Once that buying power is used up, the market will sell off a little bit. After a brief sell-off, the market will have “caught its breath” and can get ready for another sprint.<\/p>\n

The next sprint should see EEM break out of the bull flag. That will be a clear signal to the rest of the market that EEM is gearing up for a larger run to higher prices.<\/p>\n

If the U.S. dollar continues to sell off, that’ll be a big boost that should help EEM sustain its run.<\/p>\n

For now, I’d look to play for the short-term move to around $41.65. If the market pulls back nicely after reaching that target, it’ll set up another opportunity for a much bigger trade.<\/p>\n

Happy trading,<\/p>\n

\"Signature\"<\/p>\n

Imre Gams<\/p>\n

<\/p>\n

\n

READER MAILBAG<\/h2>\n<\/div>\n

Do you think the market will pull back?<\/p>\n

Let us know your thoughts – and any questions you have – at feedback@jeffclarktrader.com<\/a>.<\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Most people look forward to the weekend.<\/p>\n","protected":false},"author":55,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[76],"newsletter-type":[],"ticker":[],"class_list":["post-21386","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-imre-gams"],"acf":[],"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/21386","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/55"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=21386"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/21386\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=21386"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=21386"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=21386"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=21386"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=21386"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=21386"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=21386"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}