Flat open, so any gap will be filled. Still it's very rare what we had yesterday was just an one day event, so USUALLY the very first pullback is buy.
Global ES had a sharp pullback from 1250, which, ironically just told us the up target at least is around 1250, because once again, you early people like to try twice before trying the opposite side.
I don't think the Euro crisis is gone, as Euro still looks weak, a typical continuation pattern, so be careful, it would one day come back to haunt us!
Like to read more of my commentaries? Please subscribe my Daily Market Report. Subscribers can find all the members only posts HERE. StockCharts members, please vote for me HERE, thanks.
The 123.4 level (MM 6/8) is now support. It was hit in the pre-market and a bounce followed. If a second bounce from that level happens in the regular trading hours, I would consider this as an intra-day BUY signal. Thus, I second what Cobra just told us this morning.
Resistance now = top of the octave & harmonic extension (34) of previous wave up = 125
Cobra
How has the moneyflow been last few days ? +pos? -neg? and is there a trend? I don't know how/where to get that info myself; so this is why I'm asking.
Nice panic top on the ES overnight. Nice bottom at 820am. Kissed off VWAP and the 38.2% fib retracement of 1195.5-1249 with a little reversal candle. Been straight up since with zero resistance. Looks like the only dip that SPY traders are gonna get is buying at open or shortly after if the bulls decide to headfake the bears and let it dip a tiny bit.
The Euro deal is NOT bullish Euro and that is very clear by the currency market's reaction so the USD should be through the roof (see QE2 and the USD reaction). But, it'll probably take a few days until the USD solidifies support and the EUR solidifies resistance and thus, equity drones will BUY BUY BUY until that happens. Ho Ho Ho.
Like to read more of my commentaries? Please subscribe my Daily Market Report. Subscribers can find all the members only posts HERE. StockCharts members, please vote for me HERE, thanks.
Good morning all
JEF was up 22.9% yesterday with two classic “elevator” squeezes in one day.
“Jefferies wins over critics by reducing risk” 6:50 pm ET 12/20/2011 - Reuters
JEFs “…profit dropped 23 percent during its fiscal fourth quarter as the investment bank took aggressive steps to reduce risk-taking after MF Global Holdings Ltd's bankruptcy. Jefferies management cut exposure to sovereign bonds of troubled European countries by $4.3 billion, or 82.5 percent…and also took steps to reduce the bank's leverage and broader balance sheet. While those decisions led to weaker profits and revenue, investors cheered Jefferies' report, sending its stock up 22.9 percent to $14.50, the highest close since before MF Global's bankruptcy filing on Oct. 31. …The investment bank sold all of its Greek debt holdings in November and reduced its gross exposure to bonds issued by Ireland, Italy, Portugal and Spain to $375 million worth of long positions and $534 million worth of short positions. … Combined with other asset sales, Jefferies reduced its balance sheet by $10.2 billion, or 22.5 percent, during the quarter, with total assets of $35 billion at period-end. The bank also cut its leverage ratio significantly, with common shareholder equity representing 10.8 percent of assets on Nov. 30, down from 14.2 percent at the end of August. …”
Disclaimer: I am not an investment advisor. This is just my opinion NOT investment advice.