1st Day Of The Month Jumper -- Failure

The inside range, morning move up was suspect from the start due to some very notable (let's just say screaming) index divergences.  Let alone a TICK moving average below zero and no +600 prints.

Sometimes it's just obvious: Small caps were hanging out at lows and the emerging markets were in a true trend move down, as the ES printed it's last 10:00 HOD print -- just above the overnight highs.  Trade of the day!*!

Once the ES reversed from highs, the Russell bounded to new lows and so did emerging markets, foretelling a ES move to range lows versus a shallow pullback scenario.  Last half hour featured a break of those lows and a move to 1800.

Not surprising that the programs were there to pounce at S2.  And based on this metric alone, I'm looking for some buying interest come tomorrow.

 

Holiday Balance

Just a nice inside day, ultra-low volume session that offered up two nice range extreme trade ideas.

Holiday Balance

Nice example of the bullish tendencies when an excess tail forms at the prior day's low or minor low 1st hour.  Nothing but continuation grind higher.

But it was an inside range session and the grind higher hit yesterday's highs to the tick last hours, and a nice series of sell bars took price bad to VAL.

Great trades all day today, just volatility was so low that it was imperative to adjust targets accordingly.

Slow...

Not much to talk about today.  Pre-holiday cash range was about a point and a half for most of the session.

And we expect more of this tomorrow unless something comes along to shake the the buyer's tree.

As Expected

Yesterday we felt a test of the highs was on tap, and that's what printed today.  They tested and cleared the 1800 zone.

Barring any new negative news, we expect the holiday grind to continue higher next week with low volatility but are on watch for swift inventory corrections.

As Planned: Up Day

Sometimes the Crew here just does not need to out think ourselves, do we?  Great insights yesterday!

As we pointed out yesterday, the Fed move down rejection at mechanical S2 quite possibly indicated some lolly-gagging around by the sellers.  And we all to well know what such instances of lolly-gagging just might translate to going forward in this market.

On cue, buyers came in early on today and ripped higher it to R1, where it based at this level for two hours.  Then a cutesy VWAP little pullback, perfect test, and reversal.  (Always a great mechanical continuation signal)

The trade of today was to take heed of the VWAP reversal and triangulation at R1 range highs  -- along with yesterday's range highs looming just above to suck in price in for a liquidity test.

Tomorrow we expect at the very least balance, but most likely a bull market push back to test the 1800 zone.

Holidays are here and Santa is apparently wearing his hat.

Downside?  Ha!  Maybe if it fails from a test higher.

Fed Day

Fed Day push lower that bounced at S2.

Daily moving averages in play now too.

Bounce?