It’s a sad and terrifying day in Israel, and still in Ukraine as war rages. But as the quote of Baron Rothschild reminds us, Buy when there’s blood in the streets, even if the blood is your own. Whenever, and wherever there’s war the blood is our own, and our hearts cry, but as traders we must be cool minded and cold hearted.
JM Hurst’s work on cycles, reminded us that the market will stay on the trend it was on, regardless of external news. In that respect, the lessons of history are clear. There’s merit to the phrase, Buy when there’s blood in the streets, when the market is ready to go up from a technical perspective. That’s how we must view both the intraday charts as we do here, and the longer term. Stay focused on the technical and if it tells you to fade a contra-technical market reaction to news, then do it. The Big Low
The intraday hourly chart of the ES 24 hour S&P futures tell us that this may be one of those times to buy the bad news. The ES sold off on the Asian opening, and was weak at the European open at 3 AM in New York. But since then it has firmed. As of 5:30 AM ET, the ES is well off its low. It is still down on the day, but appears to be establishing a new, more sustainable uptrend channel after Friday’s wild swings.
To maintain this uptrend the ES needs to be at least 4290 at the time NY opens. If it’s below that, the outcome will remain in doubt. The next spport level below that would be around 4267. Bears would be in charge below that. The scrum will be on if they hold there.
Meanwhile, the move in the 10 year yield still looks to have run its course in the short run. Tepid Tax Collections Mean It’s the Supply
For moron the markets, see:
- The Big Low October 8, 2023
- Gold Breaks Down, With Long Term Implications October 5, 2023
- Tepid Tax Collections Mean It’s the Supply October 4, 2023
- Screen Picks – Definition of Insanity Exemplified October 2, 2023
- Gold Breaks Down, With Long Term Implications October 5, 2023
- The Rhymes of History September 24, 2023
- Here’s Why This Is a No Clickbait Market for Primary Dealers August 24, 2023
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