Futures Update

This is a faster, shorter way to update the market, kind of like CONTEX vs the Leading Indicators.

As I showed you, the currencies are in place for the market to move higher, but these are very small moves in the currencies, the EURO move wasn't even started until after the EU open this morning, the Yen is 1 day, the point is it's not a trend, it's a bit of noise.

I see a trade here, I would not risk an options position on a call for the trade right now based on the currency factor, but if the currencies were enough to cause the breakout technical traders would be looking for, I do feel there's a strong enough divergence to take a put trade that fades the breakout, heck, I'd be nervous to even hold a call trade overnight, even if it broke out before the close.

 ES divergences (1 min 3C chart) since the European open at 3 a.m. EDT, a positive divergence around 9:45-10:30 in the early US session and a leading positive divergence since, this suggests a pop to the upside short term.

 Here's the price pattern that is interpreted by technical traders as a bullish consolidation pattern, the thing is to get most of them to bite, they need confirmation, so follow the yellow arrow to set up this trade...

 The 5 min ES and NQ charts are what have been largely guiding these successful trades of 30% to some members making 300% or more in days. There's a leading negative divergence on the 5 min which is much more important so as long as it remains, I'd fade any upside with a weekly put, either in the SPY, Q's or IWM.

 The NASDAQ futures 1 min chart is less impressive with only a divergence at the same time this morning and a very small one now, most of the rest of the time 3C and NASDAQ futures have been in line.

 The price pattern in the QQQ, again follow the yellow arrow, without the move up to lower risk, to me the put trade (short) is not worth it, too much risk without a move up first.


NASDAQ futures 5 min chart, there's the positive for a call trade last week, then I tried one late Friday and closed it because I didn't like the looks, good thing, but right now we have a deep leading negative so if we get the price pop and the charts still looks something like this, we are back on track with another high probability trade set up, taking what the market is giving.