Four hour MACD crossed, so expecting a retest of the lows and then the bounce from there will
determine if there is more downside or not.
Expecting a retrace
Started by
CLK
, May 19 2017 08:42 AM
5 replies to this topic
#2
opinionated
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Posted 19 May 2017 - 11:23 AM
I am of the same mind,... kind of but my top cycles hit the 31st. Another factor is yesterday/today is a bradley turn.
I went butt load long bac from Wednesdays close from 22.60 looking for 24 in this timeframe. Bought the 23.50 calls for .10 looking for 1.00 as e-div the 31st and looming rate rise the following month.
#4
opinionated
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Posted 20 May 2017 - 12:13 PM
Held back calls from Wednesday and own calls from the same period. Though my opinion may be changing a bit as it is possible we fail at real resistance. Thus I will cover Monday or Tuesday at 2395 spy and wait fore next set up. Covered a butt load of did calls early this week from the breakout of 17.50 at 22.00
#6
Charvo
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Posted 21 May 2017 - 03:23 AM
The move down on Wednesday because of the Comey memo seemed to have brought out a level of uncertainty higher than at any point after the elections. I remember before the Brexit, there was a level of uncertainty that brought the markets down somewhat. Then came the elections with the same results. If ones includes the overnight session in the futures, it was a resolution to the downside. The 1st round of the French elections had modest downside movement going into it with a big gap up afterwards. Comey testifies in front of Congress after Memorial Day. I think there will be a high level of uncertainty surrounding what he will say. I think this will cause some money to be sidelined until after he talks.
I've been reading about people saying the market will rally 1,000 points if Trump resigns. If it does rally 1,000 points, it would be from significantly lower levels.
Furthermore, any talk of the Fed being dovish from now on is counterproductive from the sentiment of investors because it would mean the real economy is really tanking. The Fed was easing bigtime going into 2008 which resulted in the dollar tanking while stocks were also tanking. The Fed lowered rates starting in August 2007, and everyone saw what happened after that. A dovish Fed this late in the game does not create confidence in the economy. TLT in particular is already looking like it will breakout. That means big money is flowing towards treasuries instead of stocks.
