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Tuesday, September 8, 2015

Market Forecast for Wed updated

I am going to be on early tomorrow, I may be exiting those trades early in the morning in the event that there is a gap jump early in the morning.
The thing is this: the market pulled all the way up to close which is a very strong indicator that it will pull up in the morning due to all the traders at the end of the day coming home, seeing that the market is up and putting buy orders in overnight to execute in the morning, which will make the market rise.

I don't even feel that China is going to be a problem because of all the 2 fixes in the news: 1) they are putting in trigger failsafes like we have. If the market drops so much, trading halts for an hour or two. If it keeps going when they turn it back on to a certain level, they shut down trading until the next day. Also the US expects China to inject another boost into the market. So I do not feel that news will be a problem overnight, either.
So lets look at the charts:

The above chart if taken out of the news context would say that this ETF will probably go down tomorrow. What about FAZ and SPY? What do they say?

First SPY:

You can see that SPY is actually showing a gap up white candle, with a long bottom tail. That is a strong indicator for up tomorrow.

Now the reverse 3x bear:

Today's candle had a top tail with a gap down. I think there is still room to drop.

NOW: I have a put and a call that expires in a few days...no time left. I will be watching the market early, so look for early action.
And that is it for tonight!

See you in the morning,

Tradinginsider

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