The market cannot be stopped, or so it seems. Breadth was bearish all day today (while only slightly at -1.5:1 most of the day), but we continue the trend higher. Today’s price action was very similar to last Thursday only today we had a few pullbacks intraday. The morning allowed for a nice entry into the /ES daily swing long at 1185.25 and it touched to the tick. Our target is 1204.50 (once again new highs).
The total Put/Call ratio is inching lower closing the day at 0.68. Oil has been at a standstill at the $85 level while gold continues to rise, up $50 an ounce in 2 weeks. Copper futures (/HG) are coming off their highs, but not yet in a bearish pattern. Copper has been a market leader in the past few months. The VIX cracked 16, and oh yeah, volume continues to drop. All bearish signs, HOWEVER we must always remember that…
Closing just shy of our 1195 target (Long from 1172.25) on the S&P, indications are pointing to a lower Monday. Note: next week is Options Expiry and this tends to induce a bullish trend. Some of the things we look at to indicate daily swings in the market are the $TRIN and Put/Call Ratio (which we talked about this week). We had a close of .71 today on the Put/Call Ratio. This essentially means consumers are getting overly bullish and…
We had a daily ambush long setup on the ES early this morning at 1172.25 with a target of 1195. While the price action of yesterday and today has put the bears on the radar we’re not going to fight the trade. If we do make it to the 1195 level we will be looking for either a hard sell off or continuation to 1207. Monday’s price action set a nice tone for the week, but intraday setups have been…
Oddly enough, the NASDAQ breadth trended up most of the day while the NYSE was trending down. The Dow remains the lager of the top line figures with the Russell and NASDAQ leading the way as is typical in a bull run after a recession. Intraday trading was extremely choppy today and after the first hour or so it was pretty clear that sitting on hands would be the best plan for the day. This type of day in Market…
I’m not buying this latest breakout, but has made for some nice intraday trading this week. BANK broken out to new highs today and was the first indication that we would move higher at the daily pivot. Today was a very technical day on the EUR/USD, as well as ES. The bias this week is clearly more upside, so we will remain cautious as a push lower should come in the form of a large body candle in one swift move.
Today’s price action was had on lower volume. This is typically a sign of lack of follow through. The Put/Call ratio closed at 0.79, readings below 0.6 are seen as very bullish, reason being everyone is short and there are no more sellers. In other news, oil cracked $86 per barrel and gold & copper continues to rise. Keep an eye on Freeport-Mcmoran (FCX).
We are starting a new section which we call “Daily Reflection.” This section is devoted to sharing insight from the day’s trading session, primarily relating to day trading the E-mini’s and Currencies. We started the day with a gap up off the open. This tends to be a common occururance on the first day of a new quarter as well as the first day of the month. Typically these “professional gaps” as they are called, happen more towards the beginning…