The Slow Churn Continues
We continue in upside churn mode – meaning we climb one step up and then fall back three quarters of that – then climb again and fall back again a little. It is starting to look like a sideways correction here as the opening for the bears to drive prices down a little ahead of a Santa rally is diminishing rapidly with every session now. The medium term resistance zone near 2010 is proving difficult to overcome and I guess the strategy seems to be death by a million paper cuts.
As you can see there isn’t much activity beyond ES 2005 on the volume profile. The ambiguous remarks by Yellen earlier this morning seem to be interpreted as ‘no news is good news’ as all equity indeces are holding strong. As you know I’m still trailing my long positions from 2013.75 and there is no reason to mess with that right now.
I am grabbing a 1/4R long in GBP/CAD with a stop a very respectable distance away. It’s not exactly a fast mover this one but at the same time it’s also not prone to wild emotional swings as of late.
The remaining 1/4R I’m taking out after the interest rate decision at 10:00am – assuming she holds near that diagonal and I didn’t get stopped out.
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