Right now the Euro is stuck between demand at 1.32960 and supply at 1.35160. There really isn’t much to do at the moment as far as opening a new position goes. Overall it still looks like it wants to go lower to the demand at 1.32960.
EURUSD – Daily – 1 August 2014
Looking at the bigger picture, it is still in an uptrend, with the 50% retracement of the larger move coming in at 1.30200.
Patience is the name of the game at the moment, don’t get chopped up in the middle of nowhere.
This is going to be awesome!
This morning the market sold off after Yellen gave her little talk. I’m watching the Russell 2000 ($RUT) to get an indication of market direction and I think that we are done with this correction and are going to take a stab at the highs again. My reason is that we hit some 30 minute demand that lines up right with the 50% retracement of the total move up. It is a logical, clean retracement right at the 1,150 level.
$RUT – 30 Minute – 15 July 2014
$RUT – 180 Minute – 15 July 2014
If this level does not hold then all bets are off and I’ll be watching the 1,030 level for the next good looking demand.
So we’ve sold off for two days and I think the selling is done for now. The Russell 2000 ($IWM) is down 3.83% over the two days, which is a fairly large move. All of the indexes hit daily demand yesterday so I took the opportunity to get long in a number of names, namely
While we are in an uptrend, I am buying dips and I consider this a dip.
$COMPX – Daily – 9 July 2014
$DJI – Daily – 9 July 2014
$INX – Daily – 9 July 2014
$RUT – Daily – 9 July 2014
We have had a big run, so I am a little cautious and keeping a close watch on my positions, but a trend is a trend until the end.
Certainly something to think about, and something that I have been debating with myself for quite some time.
The markets sold off a little today, led by the Russell 2000 ($IWM, $TF_F, $RUT) that took a 1.7% pounding. If you think back to the March through May sell-off it was the Russell that lead then too, so we might be in for a deeper correction. I saw no need to get short today into turnaround Tuesday, but I’ll certainly be keeping a watchful eye on the Russell for a while.
IWM – 180 Minute – 7 July 2014
A market can correct either by selling off, or by consolidating for a while. We may be seeing the latter, with the Russell potentially trading in a range between $108 and $120. Until we break and hold either side, I’m going to consider this a trading range, or time based correction. Certainly something to keep a watchful eye on, as the Russell seems to be the canary in the coal mine right now.
This is hilarious. What’s even funnier is that some people are outraged about it.
There’s been a lot of hoopla about the sell-off yesterday. It is important to keep perspective and watch supply and demand levels. To me, the indexes still look strong, in fact, they sold off right into demand. Until demand is broken, I’mm still bullish and a buyer.
DIA – Daily – 25 July 2014
IWM – Daily – 25 July 2014
SPY – Daily – 25 July 2014
Looking at the weekend charts, there are two sectors that initially stand out to me, biotech ($IBB) and healthcare ($XLV).
Focusing on biotech for now, the $IBB ETF had a lovely day of Friday breaking out from a multi-day base.
IBB – Daily – 22 June 2014
I’ll be keeping my eye on a number of biotech names this week looking for entries. The charts I like most are
I already have long positions in $BIIB, $NPSP & $SGEN.
Something I reckon we’ve all wanted to say to people.