Our "W" Base

You probably recall me using the phrase "W"-like base a lot over the last day or two, that's what we are looking for so we can trade a short term bottom with high probabilities and low risk.

Last night I posted something I thought was pretty incredible, in fact the post was, "Incredible-Last Night's Post in Currencies Called Today's Moves in FX and (equity) Markets PERFECTLY!"

I guess I shouldn't be surprised being I spent 10 hours writing these two posts over the weekend that said the markets were going to be moving because of that exact reason, CURRENCIES.

A Currency Crisis

A Currency Crisis Continued

I'm not going to go through all of the post again, but it showed how yesterday's move was predicted perfectly by the night before's Futures post or more specifically, how the currency futures were set up last night for the market to move lower overnight and today.

So this is what we have, NOT BECAUSE OF ANY OVERNIGHT NREWS, NOT BECAUSE OF ANY OVERNIGHT CATALYSt, in fact it's difficult to determine exactly what caused the currencies to move, all we know for sure is that 3C showed in last night's post linked above, "Incredible..." that the currencies were most probably going to move based on 3C divergences and that was going to cause the market weakness we have been looking for to form a "W" bottom.

This morning in pre-market, this is what we have...

As I mentioned yesterday.yesterday's price action looked a lot like the second top of a "W" base" and you can see where we will open roughly in the white box of the bid and ask, that's roughly forming our "W" base, so today might be the day we start taking some positions for a short term tradable bottom which moves in to our bigger picture tradable top.

That is essentially what has happened, it's all in the posts above.

I'll put this out so you have an idea of what the plan is today, to watch for accumulation in to price weakness and if we get that, to start taking some short term positions to trade this short term bottom that we said we were looking for as of the 15th.

Futures update coming next...