Alright, so it’s time we take a closer look at the situation across equities. Which is annoying me to no end to be honest any natural laws involving gravity seemingly have been abandoned. It’s not that I want this market to fall as trading up is usually a lot easier than trading down. But while uni-directional market may look like fun on the surface, unless your name is Bill Eckhard it’s a major pain in the rectum for most traders who don’t enjoy buying on the way up.
As you probably have already surmised my long campaign on the E-Mini finally met its maker during yesterday’s shake out session. No complaints whatsoever as I was able to lock in 3.5R in juicy profits, thus offsetting most of the pounding I had received on the futures and forex side. But as there is no rest for the wicked I am up early and as usual – to no good
The third quarter is officially on the books and that means we are now finally entering the most profitable trading period of the year, at least statistically speaking. As with everything in life your mileage may vary. Since it’s the beginning of a new month this we should once again take step back and look at the characteristics of the ongoing market phase in terms of volatility, momentum, as well as market breadth.
I’m seeing an increasing amount of bearish sentiment here in the comment section as well as across the financial media. Which of course is no big surprise given that we are smack middle in the most negative leaning market phase of the year. However just because a door is open does not necessarily mean the bear is going to walk through it. Let’s not forget that equity indices just painted new record highs all seasonal bias to the contrary.