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Intraday Headfake?
Submitted by Nic Lenoir of ICAP
S&P futures put on another nice intraday bear trap today. As we had discussed in the morning, 1,082 was partially violated but we needed a quick acceleration and a break of 1,075 to confirm the break on the Dax of the 5,750 level. As we are getting used to this kind of bear trap, we had indicated that the market should move down quickly, otherwise any hesitation would result in testing and breaking 1,091... As always the market does not fail to disappoint.
Beyond those constant traps which are not common place, it's worth noting the pace that this market exhibits when it decides to start moving. For example we move 1.6% in futures in just under 3 hours between about 6.45AM and 9.40AM. Thats a nice pace of 873% uncompounded, or 5800% compounded. Quite punchy one might say. There were earnings releases involved, and if one looks closely, some companies did disappoing in the mix.
This goes to show that this market is all about short-term momentum, fundamentals are ignored, and one better fasten their seat belts, because it is not about to get better.
Good luck trading,
Nic
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does this market continue to ramp till we hit dollar support at 73.50?
I think it will continue to ramp untill oil hits last year level and gas goes back to $4 a gallon. Supposedly talks with Iran are advancing,and yet we see oil up today,so whoever is pushing the dollar down might be in for a big surprise if oil gets out of hands..........
The way I see it, there is no dollar support at any level.
The monsters-in-charge fully intend to steal the entire country by making the dollar completely worthless.
Only the Chinese can stop them.
The ZH audience has no interest in TA which is supported by the number of comments. We can get that anywhere. What we can't get anywhere is the investigative reporting and digging beneath the numbers. This is what ZH excels at. Please stick to that. Sorry Nic but I just don't care. I've said before TA is useless in this market.