Two hours later and I have everything back to about as normal as its going to get. I need to have a rule …No changes to the computer environment for two hours after I wake up!
The markets have blasted off to the upside this morning with the down up almost 200 points as I write this. The SP500 is now touching it 50 day MA but still well below the 200 day MA. These two Moving Averages are important as everyone uses them as a guideline for evaluating the markets aside from market systems often times use these as filters.
Myself I am flat but now with this move up this morning looking to put on a mean reversion short trade at any time. My best estimate is that we need a break of the 50 day that fails. This would be the best setup for shorting I can see right now. We are not that far from this happening and I will keep you up to date on my private twitter feed when I pull the trigger.
It’s free now so just follow @rickjswings and I will add you to the group.
Not much more to add this morning as I am worn out repairing what I accomplished when I woke up at 4. But I am back on track at least for now:)
I would also mention that the tone of the Fed has changed dramatically the last week. I really have to wonder what their thought process was for the first 6 weeks of the year as they helped remove billions from investors pockets as a result of their jawboning and actions. The only question that comes to mind is are they that inept? It would be hard to imagine that we would not have the best and brightest at the helm consider the repercussions of a monetary policy gone awry.
Short term we are back to overbought and the jury is still out on whether this is a bear market bounce or a change in direction. Myself I would think its a bear market bounce and the lows are not in. But I am not as confident in that as I was early last week:)
So for me its short term trades until confirmation one way or another.
Good luck trading today
Private Twitter: Rick_sports