Hello Everyone,
Reversion-to-the-mean systems: Today we closed out the final portion of the SPY long from last week. Very nice live system trades if you followed each official trade entry and exit. Today one of the ES systems took a 1st entry short trade, the QE 3.
Quick Comments
Gap and go this morning with the SPX gapping up strong and pushing higher until about 10:30 am where it topped out for the day, then proceeded to trade sideways in a choppy fashion for the rest of the day. At the close the SPX gained +1.1%, while the Nasdaq gained +1.3%. Remember my discussion on the weekend, the SPX had closed just inside a 'thin zone' area of little resistance, and thus it was easy for price to move up through that thin zone. The SPX closed up near the resistance area I discussed on the weekend, and very short-term on a 5/10 min chart I see that a coil has developed, which could result in one more quick pop up to resistance to complete a 5th wave move.
NOTE: The VIX closed up today along with the SPX - generally that occurs close to inflection points.
Newswise
: Tomorrow at 8:30am EST is the CPI inflation data, and on Wednesday is the PPI producer inflation data at the same time.
Bonds/Rates: 20 year Bonds sold off and long term rates continue to move lower, thus the yield curve continues to work higher
Commodities: The majority of the commodities closed up for the day, even precious metals, which posted nice gains. Remember the precious metal stocks started to outperform last week.
Matt
