This is still a pull back. We have some politico stuff holding up the market. Will the government continue financing itself. YES. I believe traders were mostly on the sidelines this week. I feel they are watching the Senate, House, President circus. More important they are waiting to see if the fed eases. All of this means that the market is in a waiting period. Volatility was real weak this week. As far as the chart goes I am bullish and looking for a turn here or just below at the 1667 area. Last week I said i felt the 1688 area would hold. Looking at it now I feel the area is 1670-1680. This is the first area of support. I see it trading between 1680-1705 for a bit. If this area breaks down we should see it hold at 1650. Let’s see how it goes. Short term I am bearish. Mid and Long term I am bullish. Happy Trading!!
I was in the mountains chasing Elk last week. I managed to miss an excellent week to trade. The FOMC meeting would have been a fun trade with binaries… Next trade. There are plenty of opportunities. So I am keeping my bullish posture for swing and position trades. The fed not tapering is huge! As long as this continues we will be long. I was a little surprised by the Summers news. The boys and girls in Washington are definitely entertaining. Make everything a circus so they get themselves in front of the camera more often. It is all about marketing so they can sell themselves as access to the highest bidder. Let us see what this week brings. I believe the 1688 will hold on the ES December futures. Then it will make another run at the high. We shall see.
This is getting interesting. The COT report is showing the big guys below the 0 line http://tinyurl.com/k76gqyc. This is the first time since December 2012 that the Large Spec are below. See below my weekly chart of the ES. Bears see this area as an opportunity to short possibly due to the Resistance from 1688.75-1705. Bulls want to take this above 1705. I am long the market with a real fast finger on the trigger. Looking at a daily chart I am expecting a pull back to 1667. If this does not hold then I will start looking for the next move. Keep in mind this market is being held up on thin air (Fed Hot Air Balloon). I believe the COT is telling us that the big guys believe taper is coming so they are starting to think short. Listen for the language coming from the fed. Personally I think they will stay quiet unless the market starts to tank. Then they will ease taper talk. If the market gets moving above 1705 then they are going to bring in more language about taper.