A grind to a new all time high is a recent theme of this market. Fueled by China news and NFP the market had yet another risk free Friday. One need a patience of a monk to sit through the grind. One of the solutions is "set and forget" while doing something more productive. This market needs a reason to sell. Technicals are important, but not enough. Whoever shorts this market gets squeezed and only adds to the next leg up. One of my projected levels was tagged on Friday. The projected levels are good as targets rather than resistance levels to initiate a short.
There is no doubt that the long side gets overcrowded. The upside reward is questionable as well. Nevertheless, the active traders are in position to capitalize on relatively small swings that are available every day.
My scenarios going forward:
- a pullback to an aggressive support and a bounce to a new all time high
- a pullback to the channel bottom and a bounce with a potential break of the channel
If you are interested in the intraday ideas you can follow me on Twitter. I usually share my thoughts pre-market and intraday when some inflection points are in play.
Stay nimble. The market does not care what we think. Trade the market not the economic outlook.
11/2/2019
There is no doubt that the long side gets overcrowded. The upside reward is questionable as well. Nevertheless, the active traders are in position to capitalize on relatively small swings that are available every day.
My scenarios going forward:
- a pullback to an aggressive support and a bounce to a new all time high
- a pullback to the channel bottom and a bounce with a potential break of the channel
If you are interested in the intraday ideas you can follow me on Twitter. I usually share my thoughts pre-market and intraday when some inflection points are in play.
Stay nimble. The market does not care what we think. Trade the market not the economic outlook.
11/2/2019
