2 days ago, it seemed like the market was about to correct. Then yesterday, the market shoot up due to the BIEGE BOOK effect.
Today, the market made a high for 2010 and finally closed with a DOJI candle – not a good candle after a new high.
The market could consolidate at this high level, or it could rise, or it could fall.
The DOJI tells me that the market is still uncertain whether the TEPPER TRADE is safe now. Should TEPPER Traders take profit? OR should they set STOP LOSS at profitable levels? If they do the latter, then stock market may experience a flash crash!
Oh and they could also ride those profits higher, if BIG BEN could somehow pump the market.
I think today’s market performance was brought about by POMO. Stocks perform well near POMO periods.
Like the few traders out there, I have turned bearish on the market. I expect it to correct from here about 5% at the very least. Look at the oil prices just to get a feel of the real economy. Oil failed to rally today.
Technically, stocks have popped, resulting in a fake breakout.
Let’s see how the market will act tomorrow.
Happy trading. I am short biased again.
1 comment:
Hellos from forexfactory! I have a blog about unusual stats of commodities www.ironrye.blogspot.com and about bad news www.deadcount.blogspot.com
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