Good Evening Traders,
just posting some things as I see them
2:06 AM EST:
ES is now pushing down against the 10,000,000 contracts LRC channel, suggesting the move is getting overextended to the downside short term, be careful entering new short positions and watch for a bounce in the 796 (ambush) 798 (S2) area
1:18 AM EST:
Euro continues to roll over, next big support is expected at 1.31 level if we get there today or tomorrow that would be unanswered 650 pip move with daily’s getting rather oversold, careful holding on to any shorter-term short there
1:16 AM EST:
61% line of the recent ambush long failed, also looks like trendline could be breaking, next bounce target 61% extension and large ambush long in 796-796.5 area
Good/Scary Read:
How The World Almost Came To An End at 2 PM on September 18
On Thursday (Sept 18), at 11 am the Federal Reserve noticed a tremendous draw-down of money market accounts in the U.S., to the tune of $550 billion was being drawn out in the matter of an hour or two. The Treasury opened up its window to help and pumped $105 billion in the system and quickly realized that they could not stem the tide. We were having an electronic run on the banks. They decided to close the operation, close down the money accounts and announce a guarantee of $250,000 per account so there wouldn’t be further panic out there.
If they had not done that, they estimate that by 2 pm that afternoon, $5.5 trillion would have been drawn out of the money market system of the U.S., would have collapsed the entire economy of the U.S., and within 24 hours the world economy would have collapsed. It would have been the end of our economic system and our political system as we know it.
We are no better off today than we were 3 months ago because we have a decrease in the equity positions of banks. After all, other assets are going sour by the moment.
9:54 pm EST:
ES has now entered the highest probability long area since the plunge to 787 on Wednesday, keep in mind that there is still a short ambush from 820 working with a target of 804.5, which happens to run right into the trendline of the recent wedge and still wouldn’t violate the long ambush zone.
7:56 pm EST:
On 24 hr chart, we are trading below support
Trading hours only chart should also be considered, since the high on Trading hours only chart is 1003 , as opposed to 1004.75 on 24hr chart, which puts that ambush at 832.75, which will probably be more watched level as opposed to 833.5 small difference, but something that should be considered
News:
General Motors Chief Rick Wagoner Said to Step Down
6:45 PM EST:
It surely doesn’t take a genius to figure out that after Euro dropped 500 pips from the highs of the rally that trend change might be in place, but here is an interesting nugget as to what happened last few times Euro rallies got a red Heiken-Ashi candle. Usually, I like to see at least 2 in a row and at the close of the day, not 45 minutes after future open, but something to keep in mind:
