So the market broke the downward channel tracking back to 8/8/2017 and pushed through Fib retracement levels of the full swing with very few pauses. There are a couple ways to look at it and break it down.
Firstly, it broke the downward channel which is bullish.
Secondly, we have had 2 bull trend days in a row which is bullish
Thirdly, it pulled back after touching the 50-day moving average which is bearish.
Fourth, you could TA the move from 8/8 to 8/27 as a 3-drive move which is bullish.
Fifth, you could also TA the move from 8/8 to 8/27 as an ABC - ABC or similar which is bearish.
Sixth, VVIX closed at 98.90 which is neutral to bullish
Seventh, DXY closed up at 92.93 which is also neutral to bearish
Eigth, Bond yield curve is flattening which is bearish
Ninth, CL finish down which is bearish
So where does this leave us and how do we make money off of this? First of all you should not give preference to any individual indicator although playing favorites can be the flavor of the day.
Based on levels and lines of inertia being created I have placed the trading box at 2462.2 to 49.2
You can use a strangle via options if you believe we will break above or below those levels or you can sell premium above and below those ranges if you think we are going to level out, or you can do a time-based spread if you are looking to hedge as an ancillary position.
Be aware of short-term headline risk (both directions) but don't base your trades in 'fear' of headline risk.
Trade safely and do your homework.
Firstly, it broke the downward channel which is bullish.
Secondly, we have had 2 bull trend days in a row which is bullish
Thirdly, it pulled back after touching the 50-day moving average which is bearish.
Fourth, you could TA the move from 8/8 to 8/27 as a 3-drive move which is bullish.
Fifth, you could also TA the move from 8/8 to 8/27 as an ABC - ABC or similar which is bearish.
Sixth, VVIX closed at 98.90 which is neutral to bullish
Seventh, DXY closed up at 92.93 which is also neutral to bearish
Eigth, Bond yield curve is flattening which is bearish
Ninth, CL finish down which is bearish
So where does this leave us and how do we make money off of this? First of all you should not give preference to any individual indicator although playing favorites can be the flavor of the day.
Based on levels and lines of inertia being created I have placed the trading box at 2462.2 to 49.2
You can use a strangle via options if you believe we will break above or below those levels or you can sell premium above and below those ranges if you think we are going to level out, or you can do a time-based spread if you are looking to hedge as an ancillary position.
Be aware of short-term headline risk (both directions) but don't base your trades in 'fear' of headline risk.
Trade safely and do your homework.
Comment:
Halowave occurring on waveform. If you are long tighten up your stops now just above the 62.2 or at your profit line. If you are getting ready to short this move then watch for an EMA crossover for a trigger
Comment:
We have symmetry and a late day trigger to take a short on this market. If you are long trail your stops. If you are holding a short position monitor the London open as that will be a tell.
We have symmetry and a late day trigger to take a short on this market. If you are long trail your stops. If you are holding a short position monitor the London open as that will be a tell.