Greetings from the northern inferno!
Blistering heat has moved into the formerly sterile north. And despite the extreme heat two robot slaves (one to shovel and one to stoke) are keeping the Exodus furnaces at full power.
Ramming speed!
Where man’s flesh would degrade and exhaust the machines excel. All systems are running smoothly and the instruments inside Exodus have been calibrated to insure accurate readings. The theory is anyone can make the right decisions if they are presented with quality data. The mental challenge is abandoning human emotions like fear, desire. These things that make you human.
After parsing all the data created last week, including that powerful wave of selling that hit the NASDAQ Friday, the IndexModel has generated another bullish bias. This is the second consecutive bullish bias, heading into the second full week of June.
Which is also option expiration week. Quad-witching, in fact, since index futures will also expire. Which means it could be a strange week. Be ready for head fakes, both ways.
We have a signpost halfway through the week. At 2pm on Wednesday there is a 99.6% probability that the Federal Reserve will raise interest rates by 25 basis points. How the market reacts to the hike is likely to give direction into the tail-end of the week.
However, combine OPEX with FOMC, add a dash of global warming—forcing massive herds of humans to seek living land—and there is the possibility of the fed reaction being a head fake also.
In short, this week may be challenging. The higher time frame is likely to be active. If you find yourself becoming emotional during the action, it is okay to step aside until the exchanges settles down. But, if you can stay engaged and objective, there will likely be some bigger rotations to work with.
The robots are calling for higher prices. Nothing crazy…just a sideways drift really. Contextually, we are a bit more aware of future events than robots, which is why there is an added caveat from the good scientists at iBC labs that volatility may be elevated.
Sideways drift makes sense in this context. A hard move lower to lure some shorts into the hole, or a fast move higher to entice some premium bidders at the peak. Both parties upset. June gloom, etc.
Overall, if the robots want higher, then we shall continue to work the long side of the market more aggressively than the short.
Distinguished Exodus members, the 135th edition of Strategy Session is live, go check out the other complications backing this week’s bias.
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Sounds good. Just you guys don’t let the HFT’s, Citadel, PPT and the rest of the pinko marxist central planners of ‘free’ markets steal your wind.