• 763 days Will The ECB Continue To Hike Rates?
  • 763 days Forbes: Aramco Remains Largest Company In The Middle East
  • 765 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,165 days Could Crypto Overtake Traditional Investment?
  • 1,170 days Americans Still Quitting Jobs At Record Pace
  • 1,172 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,175 days Is The Dollar Too Strong?
  • 1,175 days Big Tech Disappoints Investors on Earnings Calls
  • 1,176 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,178 days China Is Quietly Trying To Distance Itself From Russia
  • 1,178 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,182 days Crypto Investors Won Big In 2021
  • 1,182 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,183 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,185 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,186 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,189 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,190 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,190 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,192 days Are NFTs About To Take Over Gaming?
What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

  1. Home
  2. Markets
  3. Other

Preferred Target Zone or Not?

During a couple of days, we were expecting that the market could reach higher price in current move (here is a copy of the chart we posted last week-end):

Sigma Whole Market Index

With the false break below the uptrend channel (earlier this week), we changed our view, and we were wrong.

Today, it looks like the market is, once again, heading for our preferred target zone: current price are just below a major resistance, and we wouldn't be surprised to get a blow off top early/mid next week.

Sigma Whole Market Index

Looking at our Sigma Trend Index (STI), we can notice it jumped from '-1' to '+20'. The Trend Level (TL) is at '5' (overbought), and both the Swing Indicators and the Power Level are at '4' (impulsive move to the upside).

Sigma Table


Conclusion:

After today's price action (huge impulse to the upside), we wouldn't be surprised to see higher price next week.

We still don't know if we will try to trade this move with a short term position because market are very "nervous" (huge swing in opposite direction) and highly influenced by market rumours (leading to massive short squeeze).

It is clear that US authorities are doing all their best in order to keep US indexes in good shape during the US presidential campaign and for the time being, they are very successful.

Hopefully, we used tight stop losses for our short term short positions, and we were able to exit with small losses (around 1%).

Talking about our medium term positions (which are deep under water), we will keep them as long as this year high is not breached (on our Sigma Whole Market Index, not on a specific index).

Current positions:
Medium term positions:
- short 2 SPX at 1336.99
- short 1 NDX at 2578.46
- short 1.5 CAC at 3103.87

 

Back to homepage

Leave a comment

Leave a comment