Wednesday, January 25, 2017

Trump's Wall


The equities, all on the proper side of their respective Composite POC’s made a move in formation to all time highs.   The move was grinding methodical and the POC & Settle were at the top.   We have a solid base with Trump’s Wall to stairstep higher.

Speaking of Trump’s Wall, the POTUS announced going ahead with the wall.   XLB did well today taking the Dow with it.   The Dow also took along the S&P (understandably)  and the Nasdaq (for some reason).   To finance the move, Gold prices fell $2/ounce today.

Oil is happily going nowhere building value in this current contract at prior contract levels.   Natural gas is moving in iRobot fashion

High correlation with the equities & gold...

Had a killer gold trade reading the dailies, the fibs, and the signals…
  • Contract Fibs said pullback possible
  • Double tops put in a 50% fib followed by a lower swing
  • Confirmation retest made before liquidation started
  • Liquidation went all night
  • I believe the proceeds were used to buy up equities (confirm with next week’s COT)

Carry Over Conclusions & Today’s Ruling Reason
  • Today’s volume climb was done on relatively nominal overall volume
  • (yesterday was when all the heavy buying took place, probably burned through supply)

  • Overnight globex appears to be continuing the runup.
  • Attempt equity entry with a large trail at correct pullback level (need more alarms)
  • Consider Gann
  • Consider big move for the week is done and commence target trading