Told Ya To Pay Attention
Today’s bounce was no surprise to us rats as the writing was on the wall before the NYSE opened. If you have any pertinent doubts then check my early morning briefing – and if you missed it I suggest you sign up so you come better prepared next time. Well, that’s now in the past, so let’s look at where we may be heading:
The E-Mini is pushing toward its 100-hour SMA but there’s still ground to be covered. The 100-hour happens to line up with a new NLBL on the daily – conveniently positioned at 1662. Expect some resistance starting at 1660.
As I’m seeing a bit of a signal divergence we may be running out of juice here soon but let’s see what the final hour of today’s session brings us.
The long term panels shown for a bit of context – recall that the weekly NLSL at 1665.75 should be the make or break point for the bulls (and bears). The monthly however shows us that we have not even begun to paint a correct, despite all the Hindenburg Omen hype of the past weeks. Besides, what everyone knows is not worth knowing.
The NQ at its 25-day SMA now – a breach higher would be bullish. It’s already trading above its 100-hour SMA.
Quick update on Cotton which was a great short this morning. Our early morning entry has paid in spates. I doubt many of you took it but if you did then I suggest you scale out post haste.
The equities side is however a sideshow right now – I’m a lot more worried about the fate of the greenback as we are approaching an important inflection point. For more details please step into my lair:
This entry was posted on Tuesday, August 20th, 2013 at 2:17 pm. Both comments and pings are currently closed.