Remember this rally started with a relief rally, after Florida hurricane, Irma, turned out to be a nothing burger. This also coincided with money managers returning from summer break, and being forced to chase performance, just as I had predicted they would... markets are cyclical.
Yesterday, after 3 hours of searching I finally found a trade in $GDX (gold miners), and it looks like the $GDX will continue to snap-back with gold. Gold, and gold miners, seem to be the new fear trade, as the $VIX continues to be artificially beaten down (rigged)... Guess it's not so easy to manipulate precious metals. Still, I'm only looking for a snap-back rally in gold miners.
$SOX - in wave 5 of 5 (trading into a major top) - managed to eek out a new high. Will probably hold up into the Fed news, and may even retest the highs before tumbling back to earth.
$RUT is also overbought, and looks like it's about to crack, if you prefer less volatility (risk)... I don't have a downside target, but the RUT should trade with the rest of the market. Could pullback as far as 1389 in a risk off situation.
FOMC announcements are usually followed by lower volatility, but since the market seems to have already priced in any good news... I would only expect this to be a "sell the news" event, or a very short lived relief rally. That would look like a a sell into strength, going into the close, scenario.
That's all the time I have. Follow me @3xtraders
AA
No comments:
Post a Comment