The UUP had some big volume on the buy side today. That's telling me that some big players think the dollar is around a significant bottom level.  Could it go lower? Yes, as rarely does anyone pick a bottom or a top exactly. But, we about as close as you could ask for.
That means that the market will soon roll over as the dollar rallies hard. It could start as early as tomorrow, but by Friday I'm pretty sure a significant high in the market will be reached, just as the bottom will be in for the dollar. I'm looking to go short tomorrow, as I expect a backtest to occur in the morning and a sell off to occur later. It could just sell off all day... but a backtest should occur, as it has done so many times in the past.
Volume was still under 200 million on the spy, which helped the late day grind back up. Once we make it above 200 million selling should be hard and fast. Hold on to hats, as this roller coaster is going straight down!
Red
Good point. Looks like UUP broke out (up) of a downtrending wedge.
Great call today! Thanks!
Thanks…
However, I never expected that big selloff into the close today. But, I went short about 1pm… once I saw that the 110.34 spy level wasn't going to be retest, and then “Bam” it fell off a cliff.
Tomorrow should be either a consolidation day (small retrace up… may 38% to 50%), or another day of selling. I really think that many bears are going to miss this quick move down.
I'm staying short… even if the jobs numbers are under 500k. That will only produce a small up day. I don't think the big boys are going to hold over the weekend. I just guessing… but Friday could be another down day. Let's see what tomorrow brings first.
Red
Great call today! Thanks!
Thanks…
However, I never expected that big selloff into the close today. But, I went short about 1pm… once I saw that the 110.34 spy level wasn't going to be retest, and then “Bam” it fell off a cliff.
Tomorrow should be either a consolidation day (small retrace up… may 38% to 50%), or another day of selling. I really think that many bears are going to miss this quick move down.
I'm staying short… even if the jobs numbers are under 500k. That will only produce a small up day. I don't think the big boys are going to hold over the weekend. I just guessing… but Friday could be another down day. Let's see what tomorrow brings first.
Red