Hello Everyone,

Here's a link to Tonight's Newsletter.

As expected a massive gap up this morning on most risk asset classes from the US Indexes, world indexes, most stocks, precious metals etc, while crude oil and energy stocks pulled back.  That said a lot of stocks pulled way off their gap highs with some actually closing in the red such as TSLA, IGV software etc. 

The S&P 500 gapped up to its 50-day MA, where it found resistance, and just slightly over the 61.8%
Dow Jones Index gapped to its 50-day MA around the 50% Fib retracement. 

Remember I leaned bullish well before the news last night with myself favoring a wave B higher (I've stated that wave B's generally retrace 50% but more often 61.8%) then a pullback in wave C.  My other option was that the lows were in and despite a pullback that's likely to occur here shortly, it will form a higher low vs testing the lows again.  

Mean Reversion systems Have done their job well.  Had been scaling into the correction with multiple mean reversion systems taking long entries (QE 3.2, RSI Oversold, Bull Exhaustion, Bear Long) and about 1/2 of these systems have closed out for nice gains, while a couple systems remain long, while one system is now entering shorts

also we've had some fantastic swing trade ideas lately!

have a great night!

Matt