A few of the ingredients to our “short squeeze recipe” came together today, though there’s one level left for the bulls to break to send this market higher. Let’s review the key levels for tomorrow’s session, and discuss a few ways to benefit from some short-term strength.
Getting close to the spot that we’ve had in mind since the beginning of the week. The weekly ES Pivot is 3768.5, which also closes a gap from late last week. This is the area that I’ve been stalking as the next shorting opportunity, and I will explain in tonight’s mid-week market update.
Check this video to see how we played the trend to the upside, getting long intraday and then set ourselves up to get short on the long-term.
It’s not about being right, it’s about setting yourself up for success.
Bonds breaking, dollar cranking — is it the end of times?
Daytrading the boring way is how we have been finding sanity in these markets and solid trades on short-term time frames. Here’s a look at what we did this morning and the template for how I trade the morning session each day.
Choppy markets are “stock pickers” markets as it’s said. Symbol picking is the key to relative outperformance. Finding symbols with better structure makes for a better watchlist and ultimately better trades.
Basically I’m looking to keep it simple, and that means to continue to sell the bounces until it stops working. That said, I am still looking lower for now.
The US Dollar index is holding a relentless bid, but with each passing day it gets closer to “The Spot”. When it does set up a sell and turn, the bid will likely shift to the commodities, so with that… Watch the $DXY. By the way, Coffee looks pretty good.