Today we had several trades trigger and several more add to nice gains. Thank you for the emails today from members that traded the update of the breakouts and made good money-options aren't my thing, but if the updates helped you make money, I'm very happy.
3C was clearly correct in calling the strength early, however, the distribution isn't done and I believe I know why the SPY is sitting right in a zone of resistance between a closing breakout and and intraday high breakout. IT seems to be wasting time, setting bull traps and distributing short term trades.
All of the information which I really want you to read carefully, is at Trade Guild as this is a defining market moment. I'm pretty sure after you read and see what I posted, you will be of the same opinion-the market is waiting for the jobs report on Friday and it appears, as we have been able to see the institutional movement in earnings, we are seeing a leaked jobs number and if 3C is correct, it won't be good. Keep that in mind when you are setting stops for long trades.
Tomorrow, as you will see, I have every reason to believe we will see downward price pressure, the divergence I used last night to call for early and mid afternoon strength is even bigger tonight, but in the opposite direction.
You will see how the dollar is gaining momentum which is bad for the bulls in the market. UUP is a good looking trade right now, I'll put it up in the a.m. but I would consider it a buy now.
Again, the highest probability trades, until we get the start if a reversal are on the list with limit orders-3 triggered today-all for upside gains and GOOG added more for those who bought it earlier in the month when it first appeared-actually in July. We should see more breakout-limit triggers tomorrow, I think specifically in the cheaper stocks so make sure you have alerts set and I'll update as they trigger. If you get a trade that makes a decent profit in the cats and dogs, I'd consider taking some profits before Friday's jobs report. I think we have one more day of the same old or decline but close to the resistance zone. The trades I have setup are pretty safe as they are on limits. Once Friday hits, you'll start seeing the "AT market open trades" which are a bit riskier, actually in a clear directional move they are not, we just aren't there with Friday's report, but these trades are the ones where we can make some serious money and if the report is as I think, then the core positions on the short side will start making some serious money.
I'm going out on a limb and saying this-I believe from what I have seen, the traders on Wall Street have been setting up small trades and using the momentum to make retail traders chase prices as Wall Street sells and goes net short. The 1 min negative divergence you will see at EOD at Trade Guild is extreme and the position it occurred at suggests short selling in large quantities.
The GDP was bad, a bad jobs number and I am saying right now that I believe preliminaries have been leaked, will sink this market. Read the post at Trade guild, if you have questions email me. Get familiar with the shorts, even ones that have stopped out as tomorrow I will revise the entries and stops during the day.
There-I said it-leaked numbers, disappointing jobs report-market reversal and shorts will rule the day.
Is interest rates about to start going up?
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Yes, I know - it does not make any sense - FED is about to cut
rates...but....real world interest rates are not always what FED wants it
to be.
5 years ago
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