Friday's post, Looking Ahead had this to say about early this week,
"There's definitely some positive activity today on intraday timeframes which leads me to believe we'll probably see some positive activity early next week...
...usually 3C divergences pick up where they left off, so my gut instinct would say early positive price action Monday.
...If we were to see some very early positive price action, because this 5 min chart isn't supportive, I doubt it would go far.
...could just allow enough space for the market or IWM to put in a more solid base as mentioned above, something like a "W".
Ad I demonstrated in this post, Perspective with the DIA, there really needs to be some overwhelmingly strong signals to take long risk against the market's backdrop."
So far this morning, the market is benefitting from overnight futures levitation which is said to be because of QE hints from the ECB's Notwotny, saying, "Interest rate cuts alone ..." not enough to combat low inflation, hinting ECB QE may be coming, but once again, either someone knew he'd say this last week (Friday) or as usual it's just being offered up as a way to understand a complicated market in a 30 second soundbite as we saw the probabilities of early strength being very high Friday afternoon from 3C signals, nothing else.
This move however, doesn't have the correlation of USD/JPY moving with it, the last two times that happened, once ES weaker, once stronger, both moves reverted back to the correlation and failed.
We also took a trading (speculative ) position in NUGT late Friday, Trade-Idea: GDX / NUGT long (speculative), that looks like it will do well this morning, I'll be watching it, I think it may be just a temporary move, but we'll let the market tell us.
More after the open...
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