ES at the daily view.
So the ES close back into its old upward channel again which I call "Wolverine" from X-Men. Because I ran out of goofy names in my head and this channel just keeps coming back.
Liquidity levels made a strong comeback last week and now we are seeing higher lows. An IHS pattern is forming - albeit a messy right shoulder.
That doesn't mean we won't get pullbacks along the way. Shorting is already the riskier side of trading. Now, it's even riskier than before. We can have pullbacks along the way. But the trend line or major supports below are basically the Spartans from "300."
The NYAD decisively broke its trend line resistance which is a bullish divergence. Multiple risk-on assets and liquidity charts are showing uptrend now. I'll put it this way. I have extreme doubts that the NQ will close the day below 3250 for the next week or two. If the ES does touch around that area, I'm going big long there.
Why did the ES rally today? Too many amateur traders who were chasing the news. Think about it.
When the President contracted COVID, that was every permabear's dream come true. Unfortunately, most permabulls and permabears tend to ignore what the charts and internal market data say. So, permabears were shorting into the weekend with the same exact thought since March. "There's bound to be bad news over the weekend." Today, we definitely saw some shorts panicking and covering. That's what happens when you chase the news.
A smarter play was in biotech. XBI and LABU were already forming an inverse head and shoulders pattern. They were ready to rally anyways from a technical view. When the President was rumored to be discharged from the hospital this morning, biotech had an excuse to play out that bottoming pattern. LABU rallied over 15% today. 9% was from intraday and not overnight.
So the ES close back into its old upward channel again which I call "Wolverine" from X-Men. Because I ran out of goofy names in my head and this channel just keeps coming back.
Liquidity levels made a strong comeback last week and now we are seeing higher lows. An IHS pattern is forming - albeit a messy right shoulder.
That doesn't mean we won't get pullbacks along the way. Shorting is already the riskier side of trading. Now, it's even riskier than before. We can have pullbacks along the way. But the trend line or major supports below are basically the Spartans from "300."
The NYAD decisively broke its trend line resistance which is a bullish divergence. Multiple risk-on assets and liquidity charts are showing uptrend now. I'll put it this way. I have extreme doubts that the NQ will close the day below 3250 for the next week or two. If the ES does touch around that area, I'm going big long there.
Why did the ES rally today? Too many amateur traders who were chasing the news. Think about it.
When the President contracted COVID, that was every permabear's dream come true. Unfortunately, most permabulls and permabears tend to ignore what the charts and internal market data say. So, permabears were shorting into the weekend with the same exact thought since March. "There's bound to be bad news over the weekend." Today, we definitely saw some shorts panicking and covering. That's what happens when you chase the news.
A smarter play was in biotech. XBI and LABU were already forming an inverse head and shoulders pattern. They were ready to rally anyways from a technical view. When the President was rumored to be discharged from the hospital this morning, biotech had an excuse to play out that bottoming pattern. LABU rallied over 15% today. 9% was from intraday and not overnight.
Note
Pullback came in just in time. VIX was at one of the trend line supports. VXX also hit a support too.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.