Is the ES hourly chart a mess today? Why, yes. Yes it is here at 6:15 AM ET.
The hourly indicators say bullish. The proof would be in a breakout above the trend channel at 3483, and particularly above the overnight high of 3491. If that happens, the next target would be the trendline at 3498.
Click to enlarge, people!
The 2-3 day cycle projection projects to 3507. Once they clear 3497, you’d have a complete reverse head and shoulders pattern, that you can see building on the 30 minute bars. That pattern would measure to around 3536 if there’s a breakout.
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Meanwhile, the big picture.
Scheduled liquidity data has told us for a couple of months that October would be bullish. That played out like a charm in terms of the technical analysis last week. We also know that liquidity only gets more bullish this week. The technical picture confirms that outlook. We must give the bullish factors the benefit of the doubt.
My stock pick screens confirm that. I’m adding 7 picks from those screens this week, 5 long and 2 short. That will leave 13 open picks, including 11 longs, and the 2 new shorts.
Four chart picks were stopped out last week. Needless to say, all were shorts. The two older picks had nice gains, partly offset by small losses in the short side picks from last week.
The list performance improved sharply last week as the average holding time increased a bit. Gains doubled from an average 3.2% to an average of 6.4%. The average holding period last week was 20 calendar days, up from 17 days the previous week. The average holding period has ranged from 16 to 22 days, or just over two to three weeks.
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Past performance doesn’t indicate future results. There’s always risk of loss. Chart picks are for informational purposes only. These reports are geared toward professional investors and experienced individual traders. Do your own due diligence before trading.
The pop in the miners looks wildly bullish on the charts.
Yesterday’s news:
The Fed’s balance sheet has now grown by over $2.8 trillion since March. That’s when the pandemic panic was at its extreme and the Fed went into high gear. Lately that growth has slowed drastically, to around $51 billion per month on average since July. But that is decidedly not the whole story.
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