Thursday April 7, 2016
Key Developments :
- Market awaits the speeches from 4 central bankers before the open of trading.
I went short futures last night after the close and I have covered. The action into the close is not something I like to be short into, particularly with 4 central bankers speaking before tomorrow’s open. 2 tonight and 2 in the AM.
The case to be short is just not there for me.
As I analyze the chart. In my mind the better trade is a Yellen bounce into 2060 where I can short again for the bigger move lower. That is my current thought process. If we open down below today’s low, I will re-evaluate my entry but I ask myself, do I really want to be short into 4 central bankers?
The blue line on the chart below is the 5DMA (65 on the 30 min). I would love to see a rally into it and give us another place to re-establish shorts. Let’s see how it plays out.
It is also possible that once again, we squeeze into a higher high. I will evaluate my short thesis up in that 2060 area.
The Bottom Line:
There is bearish price action out there to be monitored, but not enough for me to be short overnight. I am not very bullish up here either so I am flat looking to re-short until I see a reason not to be thinking that way.
Chart of the Day:
A pretty epic rally the past few days, but is this just a bearish flag in the big picture?