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Assessments / Blog


2018-10-31
ES #F Demand winning the battle


The daily chart of the S&P 500 mini futures contract above shows our proprietary SUPPLY and DEMAND Dashboard and BXB (Bar by Bar) Signals using data from the NYSE.

 

The ES made a recovery and closed higher by 46.25-points Yesterday, as expected. Volatility is still very high but at the time of this writing, selling pressure is still easing. We could see higher prices for another day or two.

Resistance to the up side should come in at 2712.25, 2723.75 and 2750.25.

Daily Signals October the 30th:

S & D Dashboard Algorithm turned Bullish except for Volatility and Daily Signals are all Bullish. Volatility eased, but is still in Bearish territory

The Supply and Demand Sentiment Tool is at the Greed level. Volatility is still high and wild price swings is still a possibility.

 

Link to Facebook Group where these assessments are also posted regularly.

Click here for example of reversal trade taken in Feeder Cattle that can be found on this page.

 

US ELECTIONS MAY TRIGGER MAJOR MARKET BOTTOM – PART II

Keeping in mind the information we presented in Part 1 of this research, our hypothesis is that US elections cycles present a huge opportunity for skilled traders by creating volatility and rotation in price and many segments of the global markets.  Over the past 3+ years, we have been writing about what we call a “capital shift” that has been taking place.  Near the end of the Obama presidency (2015 & 2016), a number of factors were taking place in the US and global economy.  First, the start of the new Presidential Election cycle events was already working through the news cycles – the selection of the candidates.  Second, China had recently instilled capital controls to prevent a capital outflow issue and to support their bulging economy locally.  Lastly, emerging markets and oil had collapsed, putting incredible pressures on certain foreign markets to support their local economies and find suitable sources for their investments as currencies started to collapse as well.

This event, that actually started in 2014 or so, initiated what we call the “capital shift” where cash quickly moved out of risky investments and hunted for and deployed within safer investment structures – the US and major global equity markets.  In particular, we believe the US Technology, healthcare and biotech sectors were huge beneficiaries of these new capital investments and we believe as these share prices started increasing, more and more capital kept flowing into these sectors – like a dog chasing his tail.  The price advances seem to never end…  until the 2016 election cycle event.  This caused the entire global equities markets to pause for a few months as Hillary Clinton and Donald Trump battled it out.

Click on this link or chart above to read more....

Source:

Stock & ETF Trading Signals

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The information delivered here is for educational purposes only and is not intended to be a recommendation to purchase or sell any of the stocks, futures or other securities referenced. All references are for illustrative purposes only and are not considered endorsed or recommended for purchase or sale by MC Trading.

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