Yesterday’s markets followed more or less as what was to be expected.
That whole rhythm of the market thing.
Know why chart patterns exist? Sequences recur.
Some don’t, but the fact that some do is the fundamental basis of patterns. Be they chart patterns or otherwise. Candlestick patterns are still a very popular tool amongst chartists because those patterns are the sequences that recur the most.
And, frankly, it seems like these patterns haven’t changed much or you wouldn’t see them on any chart you can name.
Unlike nature, the Golden Mean/Fibonacci Spirals [where the Fibonacci levels come from in charting], markets don’t stick to those levels or follow them perfectly. That’s why they’re called levels in the market.
Nothing can be certain.
What To Look For Today
With that said….I think we’re going see a kinda choppy morning but an overall bullish day, with some very strong slopes up.
- -I expect $VIX to gradually chop up. Don’t forget markets can go up as $VIX does.
- As of 6:50 AM, S&P 500 Futures are trading -4.25 @ 2718.75. They’re moving up on good numbers from $WMT. Oh, now it’s 10 minutes later and I checked before posting and now $WMT trading down. Haven’t read the E.R. yet.]
- There are three big numbers out today. The Philly Fed Manufacturing Index and the initial jobless claims data come [email protected] 8:30 AM EST | Analysts are expecting solid numbers there. The third is Natural Gas Storage at 10:30 AM. If markets need another kicker after morning chop that could be it. Or it very well could start the chop. Let’s see.
- Trend-wise remain bullish on SPX watch 2680ish as a reversal to get scared about.
- Bio-techs look stronger.
- Airlines look stronger.
- Other names I’m watching today for entries/averages on.
- The trend isn’t broken.
- I noticed way more equity blocks going through than usual vs. big opening options positions. The skeptic in me wants to say that we go up today but on low volume due to that sort of action.
- One caveat; Yesterday the 30-year note briefly broke its present resistance but pulled back quickly. If you asked me, I’d say that it was probably some of a Fed taper sale. The Fed is going to want to sell bonds high, ya know. So while that bond trade happened it might not be so important…today anyway.
Sorry for not posting this last night….hence the improper date. I’ll do one tonight. At the right date
[Note: I’m essentially going to be starting a newsletter that’ll be short-form most of the time. There’ll a side-page on the blog once that kicks into gear for these notes. PDF Version is linked at the bottom]
Hell of a day.
Some solid gains on several names, but the markets as a whole have gone loco. MUY loco.
For an extended period of time during the day today..stocks,bonds,gold, volatility AND the dollar were ALL trading down. Even weirder, downward pressure on all of them simultaneously.
Market dynamics tend to behave in a manner that asset classes are typically forces that act against each other in some weird and twisted attempt at a contrived equilibrium.