Just a quick reminder to keep an open mind in the face of this kind of market. It is not just these violent day to day swings, but rather the hour to hour and minute to minute ones that illicit raw emotions out of traders. If you are sitting on a very high level of cash, as I am, one of the tendencies is to want the market to go down a lot more in order to pick up cheap bargains.
Resist the urge to become overly bearish. At any point, the big money can come in to this market and stabilize it. If you are blinded by your pessimism, you will miss out on some great opportunities. Judging from today’s sharp gap up, though, we are not quite there yet. While breadth is good, volume is light. The past few rally attempts have completely fallen apart into the closing bell, and have frustrated a great many of bulls in doing so.
It would be a real positive to see volume pick up into the closing bell, and to see us go out near the highs of the day. However, as a swing trader, I would not be betting money on that happening, just yet.
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Thanks for the shout Chess. So many of my idea are found using the blueprint. It’s tha ROC
thanks for the great post.. i’m in 100% cash now – sold all my oil futures @ 76.28 .. picked the exact top for once. the real question is where does the euro go from here.. any thoughts?
Thanks for reading.
The Euro *should* be close to a temporary bottom. Everyone is short it and everyone hates it. Main street media is talking about its inevitable demise. So, I would suspect we are going to see a sharp technical rally.
However, it is simply not my style to pick bottoms. I’ll wait for a bounce, and then see how sustainable it is before getting involved.
Le Fly’s market tell is the Yen and FXY is trading in a 1 yr long ascending triangle
but DJT did not confirm DJI lows
Excellent point re the trannies. They are above the 200 day. Could be a nice divergence.