Tomorrow is another news day, Fed minutes expected @2pm EST. With this type of ‘scheduled catalyst’ for price action, things can get very interesting before and after news. In particular, we have been talking about how US equities will respond – ES (S&P 500 e-mini), NQ (NASDAQ e-mini), TF (Russell 2000 e-mini). Here’s a clip […]
The essential characters of traders/investors can be captured in the profit/loss matrix diagrammed as below. Basically we belong to one of the characters. The two factors that define a character are profit and loss. Quadrant I character tends to take the small profit and run because of fear of losing. Without the assistance of a […]
Attention now turns to what the Fed’s reaction may be & whether we may see a rate hike in June. This certainly muddies the water as there has been a bit of an understanding that the Fed would not actually raise rates. The big news yesterday surrounded IMF Christine Lagarde’s comments toward Janet Yellen pleading her not to raise rates yet.
What this sets up for us is increased uncertainty going into FOMC meeting in a couple weeks (June 16-17th). […]
The Dow theory by Charles Dow is basically talking about market trend, its three phases and how to confirm the market trends. Recently, we have noticed the Dow Jones Industrial Average (DJIA) has a divergence with Transportation Average index (DJTA), and is indicating a potential reversal of the trend. See the chart below. DJTA index […]