Things continue to progress nicely for us on the trading front and I decided to not push my luck by entering any additional campaigns today. After all correlation risk is significant in this brave QE world as currency driven moves usually affect symbols across the board. Besides everyone and their poodle seem to be bullish right now, and to once more quote the great Mark Twain: “Whenever you find yourself on the side of the majority, it is time to pause and reflect.”
I don’t expect that many of you are spending much time trading anymore and that you’re probably busy with last minute Christmas preparations. Now before you accuse me of forgetting about the remaining 77% of the world’s population remember that a vast majority of readers are located either in the U.S., Australia, or Western Europe. Plus we trade U.S. markets which still observe Christian holidays. And last but not least – I’m probably the least politically correct SOB you’ll ever have the misfortune of running into
Now as today also marks my last active trading session of the year I thought I’ll treat you all to one final momo update. [...]
It is the first trading session in November and that means it’s time for another momo update. What I’m seeing across the board reaffirms the current low participation holding pattern which I proposed in my last update. Various attempts to break even modest support zones have failed and in the process consumed almost all short term bearish momentum over the course of the past few weeks. Although I am still holding short positions from near ES 2150 my perspective now has shifted toward short term bullish and long term bearish. Let me tell you why.
Last week’s decision to hold through a trading bot driven low participation reversal higher appears to have been a good one as of right now. At least the campaign managed to survive the weekend and that’s no small feat in this volatile market environment, which incidentally is why I am choosing my words very carefully. The ides of October often bring us stormy weather as well as volatile markets. Given ongoing fears of a large scale sell-off another momo update seemed appropriate.