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This market is a bad joke directed at you, teasing you with potential breakouts in either direction. There simply is not enough conviction by bulls or bears yet to sustain a bonafide move out of the current consolidation we have been in for several weeks. The volatility index is once again holding strong above 30, and stocks faded rather quickly after decent open this morning. We are now firmly in the red across the board, although it is far from a bloodbath. In fact, most of my longs are in the green, as we are finding some diamonds in the rough inside the 12631 Trading Service. So, the picture is still quite mixed
Beyond stocks, the overall vibe is one of mild risk aversion. Updating the Euro/Yen cross form yesterday that I discussed, you can see the Euro weakening even more today, and losing a key reference area. Again, this tends to dampen risk appetite as a whole. In sum, a long/short strategy is working for me in this market. I am focused on keeping a tight lease on all trades in terms of timeframes and stops for now, until the current broad market consolidation resolves one way or the other.
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chessNwine, if we test the low end of the symmetrical triangle in SPY today does it concern you that the last up move never reached the upper trend line? Does that show a failure by the bulls to even reach resistance before SPY is back testing support again? Thanks, Tom
Slightly concerning but the selling is just kind of drifting here and so not too much for bears to get excited about just yet.
Check out DPZ today.
Beast