Winter is on the horizon and I’m not talking about the annual season. In my mind there is only one way to describe the price action as of late and that would be ‘highly unsettling’. Very little out there makes sense anymore and it ‘feels like’ as if the entire contraption is being held together by duct tape. As it’s the last trading day of this month and confusion is on the rise a momo update seemed most appropriate.
We’ve got a lot to cover today, so I will spare you the pleasantries and dive right in. Yesterday’s session once again must have been frustrating for many participants due to a continued lack of direction. But I expect resolution to be delivered swiftly and brutally as the equities are now coiled up like the proverbial snake.
We seem to be reverting toward Friday levels across the board with equities still holding most bullish. Instead of trying to guess which next turn this hare from hell may run I thought it to be more productive to put together another momo update. What I finding is rather surprising as it’s either very bullish or very bearish, all depending on how this week resolves. No worries – I’ll walk you through it step by step:
The other day I felt the need to remind everyone that we as retail traders have one principal advantage over fund managers or institutional participants such as trade desks or system operators. We don’t have to trade unless we want to or perceive the express need to risk our capital. Now given by yet another spectacular failure to breach outside a now well established trading range it seems that we again may be well advised to claim that privilege.