TradeZero Blog

Today, we’re diving into an essential topic for those interested in short selling: scanning and charting. In this blog, I’m sharing my go-to techniques to help identify high-probability short trade setups.

The S&P 500 ended last week higher, bouncing back from some of the prior week's volatility. The index rose as investor sentiment was buoyed by corporate earnings, a strong jobs report, and optimism around key economic data suggesting the economy could be on more solid footing than previously feared.

Global stock markets experienced mixed movements last week, with the Nasdaq climbing to an all-time high amid Big Tech earnings announcements and days away from the U.S. Presidential election.

The stock market experienced a mixed performance. After a six-week winning streak, major indices saw some losses. The S&P 500 dropped 0.8% for the week, marking its biggest decline since early October. The Dow Jones Industrial Average and Nasdaq Composite also faced minor declines, despite a late-week rally. The market faced pressure from concerns about economic conditions and interest rates.

Technical analysis is one of the two primary methods to understand stock market movements. While fundamental analysis focuses on a company’s financial health for long-term growth, technical analysis zeroes in on price action.

The stock market showed strong upward momentum during the week ending October 18, 2024, bolstered by positive earnings reports and solid economic data. The S&P 500 rose approximately 0.8%, maintaining its upward trend, while the Dow Jones Industrial Average and NASDAQ also made gains.

Unlike traditional investing, which, while still risky, allows you to sit and observe whether your thesis is correct, trading requires rapid responses, and opportunities arise quickly — but also fade quickly.

The stock market saw a positive rally despite mixed economic signals. The S&P 500 gained 1.4%, driven by strong earnings reports from big banks and sectors like technology and transportation. This occurred despite mid-week inflation data, which raised questions about future Federal Reserve rate cuts. In response to inflation concerns, U.S. Treasury yields rose, reflecting investor caution about the economic outlook.

Markets were resilient as September and the third quarter closed, registering gains despite economic and political uncertainties. The S&P 500 and Nasdaq closed Monday, September’s last trading day, up 0.4%, while the Dow Jones gained nearly 0.1%. The S&P 500 notched its 42nd all-time high for the year, making it the best September since 1997 and the best start to an election year ever.