Market refuses to go down
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Unreal strength in this market. I figured a large gap down after all the gains the past week on a Monday would bring out the sellers but the dip buyers came right in on a 10 point dip and bought like madmen. The pullbacks are so brief that if you don't buy on the slightest pullback, you have to buy on strength, which a lot of people are loathe to do.
The liquidity overflow is pretty obvious and the Fed will be late or will probably never pull out the liquidity until we have rampant hyperinflation. Shorting is still suicide here.
The liquidity overflow is pretty obvious and the Fed will be late or will probably never pull out the liquidity until we have rampant hyperinflation. Shorting is still suicide here.
They can't, here's why:
http://www.minyanville.com/articles...oney-printing-currency-velocity/index/a/24469
Quote from Ivanovich:
Care to restate that?
No, just pull up a 5 min chart of the Es and the EUR and you will see what I mean. If the EUR is showing strength and you get a good buy set up on the ES odds are in your favor, when the EUR stalls take profits. For example when EUR bounced off today's pivot that was a green light to buy the pull back in the ES if you were so inclined.
Or you could just buy the EUR
My main point is that the rally in equities at this point has more to do with dollar weakness than anything else. I buy the futures on the overnight dip and a few scalps intra day if I see EUR strength and get a nice buy setup on the ES or NQ but otherwise am happy to just ride the rally with the calls.
Risk of a blow off top to this move has increased as shorts have not capitulate but rather added to their positions using today's price improvement.
Expect that shorts will defend their position afterhours which will give us another overnight dip trade to take advantage of.
There is a slew of numbers in the AM, my guess is that they will be better than expected in a continuation of the trend we have seen the last few months and the market will pop especially as this is op ex week. Even if they aren' good just wait until the regular session opens and any dips on the numbers will be made up. Pretty much risk free taking a punt on the number in this environment. I will be looking for a long on a dip overnight and will hold in to the morning session again.
Expect that shorts will defend their position afterhours which will give us another overnight dip trade to take advantage of.
There is a slew of numbers in the AM, my guess is that they will be better than expected in a continuation of the trend we have seen the last few months and the market will pop especially as this is op ex week. Even if they aren' good just wait until the regular session opens and any dips on the numbers will be made up. Pretty much risk free taking a punt on the number in this environment. I will be looking for a long on a dip overnight and will hold in to the morning session again.
