I’m continuing to follow the script I posted on Sunday. As I thought, it was a good idea to avoid directional bets yesterday and today. Yesterday turned out to be a whipsaw fest and you’ll see in the ES chart below today was a range bound day.
The dollar has broken its trend but I continue to wait for the 50 day average on UUP and UDN to be taken out. This is a chart of UUP (bullish dollar) and it is currently trading right up against its 50-day average. The currency market is waiting on tomorrow’s Fed meeting and the jobs number on Friday. I am curious whether the Fed meeting will cause movement or whether we’ll have to wait for the jobs number.
VXX is also bumping up against the 50 day MA. Note that the 50-day could also be a trendline. The decline has been very gradual. Note that volume coming into VXX. If we do get a breakout over the 50-day, VXX could be a nice trade since you bust the 50-day and also a trendline.
It sure looks like there is a lot of activity, but the reality is that SPY is just hugging the 50-day SMA.
Today sure is quiet compared to yesterday. Unless there is a breakout in the next 20 minutes, today’s trade will be inside the overnight range.
Today’s trades were limited:
1. Added F long.
2. Added IYT short. Covered some QQQQ.
3. Shorted AZO
4. Trimmed GLD back to its original position size.
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chartsandcoffee
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