Market Update

This is from yesterday's Trade Idea: XLF / FAZ

"Here's XLF/Financials where I'm interested in a possible put position if we get a head fake move. Typically we see head fake moves about 80% of the time, in this case it might look something like a new high above the rounding top, I often describe it's look as , "An Igloo with a chimney"."

This is a typical formation for a top including the often seen head fake move.

 This is pretty much what I described above for the XLF set up, the Igloo with a Chimney".


This is the same pattern in the averages, I'm using the QQQ here. However if you look at the last candle, it's not a hammer, but it did reject lower lows on volume, often an area to expect a bounce.

As for that IWM intraday signal...

The IWM usually leads so I guess this shouldn't be too surprising.

As I wrote last night, volatility is the name of the game today, the market just showed us.

It feels a bit early to lock in to anything, but I'm going to look as close as I can to the internals, Leading indicators, etc and see what we have going here, but we very well may have our head fake move.

I think the important thing about the September Non-Farm payrolls the retail market missed as they were so concentrated on the miss was the unemployment rate dropping, that's what the F_E_D_ has tied interest rates to and that's all that smart money cares about, they know QE3 is a dead man walking, it's rising rates that they are truly afraid of and with rates connected to the unemployment rate, today's improving unemployment rate despite the NFP miss is what smart money will react to.