LONDON (MarketWatch) — U.S. stock futures and a broad swathe of commodities moved higher on Monday, as comments from a Federal Reserve member who will vote next year caused investors to exit the greenback to reinvest elsewhere.
The obvious works in this market. I could imagine a novice trader doing very well in this market. “I’ve noticed that the market is always up on Monday so I buy on Friday and sell at the close on Monday.” The ES is up about 12 right now with an overnight range of 1092-1102. Further, it is in a consolidation zone (a flag) and if it breaks 1102 it may end up being another up 20-22 ES points day. The volatility and potential whipsaw I mentioned last night has already arrived. Be cautious. There is a lot of economic data out starting with Existing Home Sales at 10:00 ET today and Tuesday and Wednesday are filled with economic data. A big move today could be reversed at anytime. Watch indicators such as $TRIN and $TICK to give you a feel for the sustainability of the move. If $TRIN looks like the last two Mondays, we’re likely getting a repeat performance. If it doesn’t, be extra cautious.
$TRIN on the last two Mondays is highlighted in red. Watch early to see if it signals another potential strong trending day.
I also continue to watch the all time high club which includes AAPL, BIDU, IBM and BLK. If this market is really going higher, I would expect these names to breakout over their all time highs. I would expect to see these names up 3-5% establishing new highs on good volume. Lately they have all been hitting a ceiling up 1-2% on low volume hitting resistance on big up days.
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Crude Oil Trader
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chartsandcoffee
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chartsandcoffee
