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:
Always be careful what you wish for. After enduring what seemed like an eternity of indecisiveness and rangebound gyrations market participants across the board were ready to welcome a resolution in whatever direction. Of which we received an ample helping last Friday and most likely the way many had long feared and perhaps hoped to avoid. Let’s review the damage first and then see if it’s time to pick over some of the disoriented victims. After all as traders we’re virtual carnivores, which means we hunt best when confusion reigns high but the odds are in our favor. Assuming there’s prey to be slayed of course.
I really hope you enjoyed your Labor Day weekend because things are heating up fast now and it’s finally time to get back to work and earn our keep. We’ve got a few weeks of quiet but before you know it they’ll shift all gears into Christmas season, and you better make sure Santa has you on his VIP list (yes, he is a man – suck it). Time to stop slacking around, let’s bank ourselves some coin.
The August trading blues are almost behind us, various futures contracts are rolling into their final month of the year, and I’m seeing a bit of movement in some key markets. Although I advise everyone to keep position sizing small as of now I believe it’s time to dip our toe into a few campaigns and also add a few promising symbols to our watch list. As always let’s kick things off with equities: