Once in a while, we see changes pretty quick that don't seem to make any sense, but if Wall Street has new information, they will change positions on a dime, the market can be predictable often, but we can never forget that the market is dynamic, the economy is dynamic and policy is dynamic. Thus, (it doesn't happen often), but we can see sudden and dramatic changes.
For now th AAPL put from yesterday is going to stay in place as the AAPL charts don't look very good and are not seeing this same noise, but I'm a bit hesitant about new commitments until I have a better understanding of what is going on or developing or perhaps just noise.
I decided to look at the Euro/$USD, in a pullback the Euro should see weakness, the $USD should see strength, there are some curious charts here as well.
As noted last night, the 1 min negative in the Euro has worked as it should have with the Euro lower-the market is lower with the Euro as the correlation would suggest and the chart is pretty much in line.
At 2 min we have the same negative from last night, but this chart isn't as negative as it should be today to be in line with the price trend.
The 3 min chart from negative last night with the price drop today, but today's intraday action has a leading positive divergence, this suggests there's some strength building in the Euro, which would suggest support for the market.
The 5 min shows the same
Even the 15 min has a relative positive today followed by the start of a leading positive divergence, it almost seems as some new information is being discounted in underlying trade.
The $USD -remember it has an inverse correlation with the market, when the $USD is down, stocks tend to go up and when it is up, stocks tend to go down. We would expect to see the $USD getting ready to strengthen on a market pullback.
We saw a positive divergence last night to a small extent and the $USD higher today, thus the market moving lower, but the underlying 3C trade shows a negative divergence in to that price strength.
The 2 min chart is leading negative, this would suggest the dollar is getting ready to perhaps move lower which would be supportive of the market.
The 5 min chart shows a leading negative yesterday-this makes sense from the gap up standpoint of today's open, but the continued negative leading divergence today does not fit well with what the charts had been showing us.
Even the 15 min has a relative negative divergence.
I'm really starting to wonder if there's some new information Wall Street is acting on, in essence re-positioning themselves on "new" news, whatever that might be.
As mentioned earlier, the AAPL puts will stay in place, I'm not looking to enter new positions until this is cleared up, the core portfolio has long and shorts at a profit and is hedged pretty well so it will stay as is.
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