As suggested last time, the market is, indeed, looking for a new range between the most recent highs and lows. In the process, we’re forming a very large multi-day merge. Same rules apply. Play the range until it moves, then look for the multi-day trend move following the breakout.
For the first time in months, the market finally breaks down through previously established balance, which is quite a big event! The long-term trend is stil most-definitely up, but our day-to-day trend is now neutral, so we’ll have to give the market some time to digest and let it show us what it plans to do.
I was going to do the post I missed tonight, but I think it makes more sense to just go ahead and cover the last two weeks of activity this Saturday.
Cya then.
Sorry for the delay with my regularly scheduled big picture ES post. I had to do a configuration change with my computer and had to situate a permission change with my Fin-Alg software. I’m up and running again, however, and will be posting an update tomorrow.
Sorry for the inconvenience.
Frank
Not much to say. It’s pretty much Groundhog’s day. Same pattern, same story. Breakout, balance, breakout, balance. Given the situation, it’s a short update this week.
This week, again, the market shows its strength. Despite last week’s quick sell-off, she came back this week and strutted her stuff to the up-side. It was yet another reminder to always respect the trend and never try to second-guess it. With four days of balancing put in outside of the previous merge, we’re now establishing value higher. And the beat goes on…
This week we finally see the bull move is not invincible. It had to happen at some point, and Friday was the time. The market kissed the big 1300 level, and sellers came in full force. The reality of the situation, however, is that given the current market structure, all we saw was a failed breakout to the upside signifying range extension, then a traversal through the range to the lower parameter. The market should tip its hand early next week on whether or not this downside momentum can be sustained.
I have to apologize. I skinned my windows and apparently the skinning process resulted in there being a bug with my desktop capture software not showing the mouse pointer. If anybody has a question, please feel free to email me about it. I think, however, that it’s relatively easy to understand what I’m talking about, except, maybe, in a couple instances. Again, if you have any questions regarding my talking points, please let me know via email and I’ll hash it out for you. I apologize for the inconvenience and I will most definitely make sure this doesn’t happen again on subsequent posts.
Not much has changed since my previous updates. We’re still in a low volatility, step-stair uptrend. Ranging is much more frequent than trend-type moves, and one needs to be patient during “merge-building” by either waiting the range activity out in anticipation of each trend move, or developing a strategy to trade the range when they are occurring. This update gets us back into the swing of things and next week’s post will hopefully give us some opportunities to talk about possible trading ideas given the week’s activities.
OK so I just went to do a blog post and apparently my microphone is messed up. I’m trying to figure out whether or not it’s a configuration thing or if it’s the actual mic that’s broken. If I can get it sorted in the next day or so, I’ll have to go buy another one. In any case, I should get an update up soon. Sorry for the delay.