There isn’t a single trading morning that starts without me holding my breath to see what the first quotes of the day reveal, but this morning was particularly anxiety-laden, considering the consequences of the retracements about which I’ve written endlessly and the nauseating strength of the bull run over the past six trading days. How pleased I was to see my favorite color, red, slathered all over the screen. It was particularly delicious since, of course, futures had been so annoyingly (but appropriately) strong on Sunday, with the NQ flying higher by another triple digits. As of this moment, all of that doe-eyed, Fed-sucking bullish delusional thinking has been laid waste.
What has my jaw dropping right now is the absolutely pitch-perfect behavior of the /NQ futures, which executed a flawless tag of their major retracement level and did a hard about-face from UP triple digits to DOWN triple digits. The inexplicably famous Ms. Wood might be in for another rough ride.
Of particular interest to me during this long weekend was the behavior of Ethereum, which on a daily basis I point to as a crucial gauge of the animal spirits. To put it succinctly, the double-digit percentage rise in $ETH is welcome, because in my opinion it allowed the lads to get the entire run out of their system in one fell swoop and has set us up for another exhaustion point. On Friday, we can within one PENNY of support failure, but they saved it. Next time, I don’t think they’ll be able to do so.
I don’t really know these days the consequence of bond action, but I would note that /ZB is weakening sharply as I’m composing this, so make of that what you will.
Oh, and as for today’s “meeting”………..
