The price and volume view is that today's rally was simply a continuation of the uptrend in place since early April. The low of the day was in the support zone around the previous swing high of 112 15/320 on May 5. On the intermediate (months) term the market is now in the congestion zone 111-114 established between August of last year and Feb 2005. March and April was a test underneath that zone which failed since the market is back in the zone. Those Feb lows were significant because they were higher than the May 2004 lows, which is a tip off to a possible change in the long term downtrend in place since mid 2003. If the next high is above 114 then the long term trend has changed to up. If not, it looks like we'll be in a hinge which usually gives birth to a large move one way or another at the end of it. Either way, I don't see why so many traders on ET seem to be expecting the bottom to fall out. The short term trend is up and the medium and long term is unresolved at this point.
On a personal note I am taking some time off from intraday trading to polish up my methodologies. I think the ZN is fine for intraday trading of course, I just need to polish things up a little bit. I had a good streak the last two weeks and am pretty motivated. At the same time I'm a little worried about my use of size and just want to iron things out.
On a personal note I am taking some time off from intraday trading to polish up my methodologies. I think the ZN is fine for intraday trading of course, I just need to polish things up a little bit. I had a good streak the last two weeks and am pretty motivated. At the same time I'm a little worried about my use of size and just want to iron things out.