Thursday Morning Briefing
Welcome to our morning briefing. Here we are reviewing short term setups ahead of the NYSE opening bell. If you are a scalper or swing trader then these setups may be of interest to you. As usual keep in mind that these are short term setups although they could be used as early entries for more longer term positions.
The tape is moving in our favor but I don’t like it – at least not yet. First we haven’t seen any acceleration after yesterday’s sell off session. The next level of support on the TF is near 1144 and given the current gyrations I see little odds for a slice through that one.
And then there’s this – the E-Mini against the GBP/JPY, a popular carry trade currency. There have been a lot of gyrations and divergences as of late, thus expressing the sense of confusion we have been experiencing. Today’s jab higher on the GBP/JPY however is rather pronounced and am skeptical how equities can continue downward.
The bottom line however remains this – we continue to see volatile sideways gyrations without follow up moves. And those are really where the rubber meets the road – until we see continuation for at least two or three sessions I expect the current equilibrium to continue. Every day we continue in this sideways pattern increases the chances that this is simply a sideways correction – not good news for the bears obviously. So at this point the onus is on the bears to take this thing lower, and they are starting to run out of time.
On the dollar side my daily campaign got stopped out in profits earlier and I’m now interested in a long campaign right here with as stop below 80.16.
A few more goodies below the fold…
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