Friday, July 20, 2012

Some Other Assets

The closer we get to the close with no rally, the more it looks like the intraday positive divergences are going to carry over to Monday's trade as the market is pinned today for op-ex.

The divergences are still short term meaning a short term move or noise, but it can be used tactically, like for a better entry in VXX / UVXY calls. The longer more important timeframes still point toward the next trend being a pullback move.


 The 15 min Euro is negative or rather leading negative, but...

 short term 2 min intraday has built a positive divergence all day, this still could be used just as support to hold the averages in place for a pin, but seeing HY credit up kind of tells me a move up early Monday is more likely.

 The $USD 15 min is still positive, which is a market negative and leading positive, but...

 The same 3 min intraday chart is leading negative, pointing to a short term move down, which is short term market supportive.

 The flight to safety trade is seeing short term distribution intraday on the 3 min,

While the more important 5 min is leading positive.

So all these assets are showing the same thing, near term strength (looks like Monday), followed by a stronger pullback. Monday would more or less amount to a noise day although as mentioned, it can be used for tactical entries.

This looks like the highest probabilities right now.

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