As much as I hate FOMC days, I had somewhat hoped that Yellen would produce sufficient volatility to whack us out of the box in which we’ve been bouncing around in the past week. No such luck apparently, and when the market hands us a box of lemons, we’ll use it to make lemonade
Due to recent developments here is what I should add to our current NQ campaign: ABSOLUTELY NOTHING. Yes I know, your fingers are itching and it is oh so tempting to mock with a running winner. Why not move that stop up just a little or take a bit more off the table? But I strongly encourage you to simply let her run until she either arrives at her target or touches her trailing stop. Per. The. Rules. One of the toughest lessons to learn for some traders is to simply sit on your hands and let your winners run.
We literally have juicy standing in line here at the evil lair. If you’re not on the list you’re not coming in, so consider joining our club or be forced to make due with the leftover freebies. So equities pulled a surprise jump yesterday, the possibility of which I actually flagged early in the session. Apparently however my warnings were not heeded as many of you were caught with your pants down. Tisk tisk… well, that’s what you get for fading the Mighty Market Mole 😉
We’re seeing quite a bit of intra-day monkey business over the past week on the equities side. Specifically I’m referring to gapping action, wild swings during the RTH, all in the context of minimal momentum (at least judging by the hourly Zero signal). Someone mentioned this morning that he has been observing a significant drop in L2 activity (i.e. b/a sizes and durations) over the past year and that does not surprise me as many large funds have been exiting over the past year.