Saturday, March 25, 2023

Market Simply Doesn’t Know What To Do With Itself


We now have, understandably, a market that simply doesn’t know what to do with itself. With a mere three trading days left between now and the election results, people are frozen into inaction. In an odd way, it has created a bizarre equilibrium.

Last night, the went into a freefall, magically hitting precisely their low from the prior night before violently reversing. How about that?

Russell 2000 Futures Chart.

Russell 2000 Futures Chart.

Gold, which has been a real piece o’crap for the past couple of months, finally found some buyers (probably in preparation for next week’s mayhem) and is in the midst of the rare but powerful Evil Smile Pattern.

Gold Futures Chart.

Gold Futures Chart.

Not that FOREX provides us any clarity. The chart looks like we’re tracking the blue sphere at a racquetball game.

USD/JPY Daily Chart.

USD/JPY Daily Chart.

For me, I am focusing on the simple. I offer, as an example, the S&P 500 cash index. This chart sports three important features:

  1. The fact that the price peak a couple of weeks ago was nothing more than a “lower high,” which shows that the trillions from the Fed are losing their steam;
  2. The price gap that took place between Tuesday and Wednesday, which I consider a vital barrier at this point;
  3. The support at 3209.45, which is broken, opens the way to more powerful selling.
S&P 500 Cash Index Chart.

S&P 500 Cash Index Chart.

For myself, I am at precisely 113% commitment (and likely will stay close to that until Wednesday) with 45 short positions (no ETFs). My options account is pure cash, although I definitely have my eye on a re-entry. Good luck out there as we finish up this last pre-election week for the next four years!

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link


Please enter your comment!
Please enter your name here



Related Stories