For two weeks I was bearish and wrong. This week I came in neutral, but Switchboard [coded context] keeps nudging its bias long, then back to neutral, flip-flopping, if you will.
The conditions are not conducive for trading inside-out. Trying to initiate directional trades is likely to chop you out. Instead you have to work from the outside-in, fading moves back to value.
Trading conditions like this mean markets are in balance. They are resilient against attempts higher and lower, and are structurally sound.
Aside from fading extremes, this type of action also lends itself to stock picking–a pastime I haven’t actively pursued yet this year.
All the data points to neutrality with a very slight bullish bias. The huge value areas in play are hard to bust loose from. Stock picking might be the move, but I am not participating. The markets are likely to remain in wait-and-see mode until we hear from the European Central Bank tomorrow, resistant to any directional attempts.
SEE ALSO: All Eyes on Mario Draghi
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ECB -> if Draghi is a success; then Fed… leaving Yellen wide open to sink a 3-pointer but air ball it.
I think we rally to the 200 dma if Draghi sucks and Yellen is supportive of accomidative policy (suprisingly-dovish)
I dunno, I feel an epic rally. I feel it in me BONES. The one I’ve been on the lookout for since Sunday.
That WAVE from the beach? Hum yeah its still possible….
It’d weaken my 2001 analogy though
that’s the juan