A.M. Observations

Good morning, I hope you had a pleasant weekend.

Friday I was hoping that we'd see a bounce or at least the market linger in this area for a bit longer to set up core short positions, I didn't have much evidence to suggest the market would do that except a nice positive divergence for a short term long trade in AAPL and it was difficult imagining AAPL up in a down market.

In any case, a familiar pattern is repeating, sell off USD/JPY overnight on real news like housing trouble in China and then ramp the pair and Index futures in to the US open, that suits me fine for now.

The Index futures intraday charts are in line right now. The USD/JPY which tested as low as 102.15 overnight has an intraday negative divergence, it may just stay as an intraday move or build in to a larger divergence , the difference is we'd be running out of time to establish core shorts.

I'm going to let a.m. trade burn off and get a feel for the open of the new week, but most of my focus will be on looking for setups for longer term trending trades, while we still have time.