Volatility

I said as far back as last week that I expected today (Thursday) to be one of the most volatile days this week, so far we are off to a decent start. Futures didn't have any interesting pre-market divergences, but the Euro is higher, some of that is from repatriation flows which I'll explain later, we saw that this time last year and it was a real nightmare because you have to look in some very unusual places to prove it, but algos always read them wrong and that causes the market to distort, but more on that later.

For now I want to see how the opening indications finally turn out, I figure maybe 15 more minutes and we'll know. I also have a few stock/trade ideas that I was looking at last night which I'll get to today as soon as we get a grip on the market's mood.

Expect volatility as Obama returns from Hawaii and at 2:30 when Republicans hold a conference call.

As of right now the only thing I see that looks a little suspicious is the EUR/USD, it looks like a negative intraday divergence is forming there, I'll keep an eye on it, but that would cause some downward pressure on the market.