Yesterday I received a series of follow up questions regarding what now appears to have been yet another prescient tweet this time depicting a bullish divergence on the Zero. If you are new here and are unfamiliar with the Zero indicator then I recommend that you point your browser to the introduction, the tutorial, and most importantly the video section where you can enjoy dozens of recaps of past E-Mini trading sessions.
I know exactly how you feel. For weeks on end equities gyrate inside a 50 handle channel and suddenly we get a blast off out of nowhere. Annoying. But absolutely unavoidable and I recommend you don’t waste time emotionally chasing a trade which was largely bot driven and may be reversed at a moment’s notice. The Zero chart below shows us minimal participation throughout yesterday’s session and as such the advance should not be trusted. Congrats to you if you managed to trade it higher but it is probably best to not overstay your welcome.
Today’s eye watering ramp in equities shall henceforth be remembered as the 2016 Krampus Rally. So let’s relive it in all its glory. I didn’t think any comments were necessary as the Zero signal was in positive territory and pointing upward throughout the session. Textbook trend day and I hope some of you subs caught a good part of it. I personally was already positioned long since yesterday’s entry and cashed out a good a part of my ill gotten gains near the end of the session.
The Dow Jones Industrial apparently channeled its inner Tenzing Norgay and managed to climb to new highs at 18900 and all that without the use of an oxygen mask. The S&P and Nasdaq remained at camp IV for now but I have an inkling that they’ll make an attempt to reach the top before we ring in the new year. Clearly very few saw this one coming and the ensuing short squeeze has been a sight to behold.