• 725 days Will The ECB Continue To Hike Rates?
  • 726 days Forbes: Aramco Remains Largest Company In The Middle East
  • 727 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,127 days Could Crypto Overtake Traditional Investment?
  • 1,132 days Americans Still Quitting Jobs At Record Pace
  • 1,134 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,137 days Is The Dollar Too Strong?
  • 1,137 days Big Tech Disappoints Investors on Earnings Calls
  • 1,138 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,140 days China Is Quietly Trying To Distance Itself From Russia
  • 1,140 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,144 days Crypto Investors Won Big In 2021
  • 1,144 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,145 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,147 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,148 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,151 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,152 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,152 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,154 days Are NFTs About To Take Over Gaming?
The Problem With Modern Monetary Theory

The Problem With Modern Monetary Theory

Modern monetary theory has been…

Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

  1. Home
  2. Markets
  3. Other

Rally in Place

We opened 2/3rd of a long position on Friday at 1308.02 and we introduced an order at 1301 for the last third. Why?

We are pretty comfortable that the market should retest de 1335 - 1360 area in coming days (or weeks), put we are not convinced that the pullback is already over.

So, we will increase our position if the market retest the 1290 - 1305 area.

Looking at our indicators, we can notice that they are (all) in positive territory:

- The Sigma Trend Index moved from '-1' to '2', telling us the downtrend is over (at least for the short term) and that we should have more than a simple bounce back in this move.

- The Swing indicator and the Power Level (PL) are at '3' (neutral), but it is not a problem because we got a swing indicator at '5'(strong buy) on the 6th of June.

Sigma Table

Looking at our Breadth Index (red line), we can see that it is also in positive territory:

Market Breadth

Conclusion:

All our indicators give us comfort in our short term bullish scenario.

Nevertheless, we have 2 different scenario for the "ultra short term" (1 or 2 days):

After 5 waves to the downside, the market is in a countertrend move in 'abc'. We believe we are within the 'a' wave of this countertrend rally (subdivided in 5 subwaves).

We believe that the 3 first subwaves of 'a' are finished, but we are not sure than the fourth one is also finished.

Here are our 2 short term scenarios:

Scenario 1:

Sigma Whole Market Index Scenario 1

Scenario 2:

Sigma Whole Market Index Scenario 2

If we move to 1301 (scenario 2), we will increase our exposure to the SPX (with a stop loss at 1285).

If we move on a straight line to 1335 (scenario 1), we will cut our long, waiting for a pullback in order to re-enter the market with a target at 1360.

For those of you who are interested in our intraday move, you can visit our internet site: we post all our operations in real time.

Current position: 2/3 long at 1308.02

Have a nice day.

 

Back to homepage

Leave a comment

Leave a comment