1850 - Everything is about this level. We won't be very active in the markets until we see what happens at the 1850 support here, which is looking very likely to be tested at this point. At the moment, we are primarily engaged in protecting our profits as the last 90 trading days have been a good run. We are still unsure on time horizons longer than 10-30 days at the moment, and as risk comes into a strong support level
, the risk to reward and probabilities of all trades in general can come into question. For example, what if the market panics at 1850 and trips a bunch of sell stops? There is no way to rule that out, so we'd prefer to wait. In the event that happened, we are also unsure if they will sell the USD, along with the market. The media a month ago wouldn't have dared surmise the Euro
as a safe haven currency but these words have recently been used. It doesn't matter as price is the ultimate decider, and at these levels we can only play very tight while watching and waiting. However, if we are not trading and rather predicting we believe the indices will continue to trade range bound between 1850 and 2050 and that the dollar will remain range bound with a bias for a weaker EUR/USD
. But those are predictions, and not many action in trades.