Market Charts

The last few days remember I have been saying the market has been opaque, I thought it was because it was pre-F_O_M_C jitters, it seems now it was more about the market/FX correlation.

I want to be quick, because I'll be adding to risk assets including those started yesterday, maybe GLD long, probably VXX short.

I think there will still be a process, but faster than usual.

Look at the CONTEXT/ES dislocation, this could be a huge move.

 CONTEXT is positive suggesting a 50+ point ES move to the upside.

HYG-Credit which leads the market is positive 1 min

HYG 2 min

HYG 10 min

 ES 1 min

NQ 5 min

TF 1 min...

The Index futures are becoming more and more positive after falling hard at the European open around 3 a.m.

 SPY 1 min is building positive and migrating out showing a stronger positive divergence developing or accumulation of these discounted prices.

SPY 2 min

SPY 3 min, so there is a process of migration through the timeframes which is good.

IWM 1 min

IWM 2 min

IWM 5 min never even moves down to confirm the move this morning.

So I'll be looking at assets as add to positions and maybe some new ones, I would say if you don't have any, I would love to be entering new positions at this area, but even the ones from yesterday should see sharp gains with the charts improving and the CONTEXT 50+ point differential, which is probably one of the largest we have ever seen.

It looks more and more like yesterday and overnight were indeed the typical F_O_M_C knee-jerk reaction that is typically reversed, in fact almost always. The first move tends to be the wrong one.