Hello Everyone,
Well, yesterday we did indeed get a quick pullback to relieve and as expected (see Tuesday comments), the dip was bought up as Liquidity remained favorable. This will be something to monitor later this month as we may see Liquidity fall due to the TGA refill if not from RRP. Many names not getting very stretched so continue to raise stops and follow your plan. Sentiment is also showing exuberance (that alone is not a sell signal) but something to factor into your risk profile.
Tuesday Comments
: Last week, I commented on the two way action (consolidation) as price waited for the 9 day EMA to approach. This action formed a bull flag which launched the recent move over the past 3 days (from contraction comes expansion). Tomorrow, we have the FOMC and the consensus is for a pause and for JP to keep open the window for another rate increase if data supports - we shall see tomorrow. At this stage, continue to trail up stops with RSI 14 on daily now above 70. Keep some hedges handy if needed if you see evidence of a quick pullback unfolding - note liquidity remain constructive should be get a pullback. I will add some ideas but remain prudent.
Thursday Comments: Range trade on the SPX/ES has unfolded as per Tuesday's comments.
Price is coiling as a result with the SPX 9 day EMA now closer. Bulls remain in full control and think the run the equal highs above (either direct of after a dip).
We have had some terrific trade ideas again this week so hopefully you were able to catch a few and thanks to all for sharing some other setups. Much appreciated.
ES Support 4462 4430 with resistance above 4485 4500 to monitor overnight. Will refine again and update in trading community.
Please take a moment to look at the trade ideas.
