Hello Everyone,
Reversion-to-the-mean systems: One hell of a trade off the QE 3 short on the ES systems! Today I elected to cover 1/2 locking in 180 points of ES/MES points of profit! We still have a 1/2 position and will exit the final 1/2 by the system
Market Comments
: Choppy mostly sideways day following yesterday's bloodbath. Late day rally the last 30 min that enabled the major indexes to post modest gains. I'm on the lookout for an oversold bounce here possible to 4000 area as one option.
NOTE: This afternoon we pointed out 5 waves down (see 10 min chart), and price bounced into the close
News Items: OPEX on Friday, expect volatility. Also keep an eye on the rail strike
Bonds/Rates: 20 year Bonds trying to bounce from an divergent low
Commodities: Most of the commodities were up today with the DBC index up +0.4%. Natural gas was up big +10%. Copper was down -1%, DBA and Corn. Precious metals were mixed
Trade Ideas: The long ideas I gave on Monday held up extremely well and many of them broke out today. I also added a few new ones and energy stocks
Matt
