Best Buy and The Home Depot both beat earnings expectations and HD raised their estimates. The results were borderline “too good”. The Fed’s QE is on everyone’s mind and any clues of an improving economy adds to the speculation of when the Fed will start reducing it’s money creation and government financing. The Globex session built a resistance line at 1666. As posted in chat, there was a good chance the R1=70.25 and/or yesterday’s high at 70.75 would be reached on a breakout of 66. This turned out to be a good long trade opportunity, but it’s not today’s example trade. I’ve become leery of selling against the all-time highs as the bulls have continued to grind price upward over the last few months. However this morning, price failed to reach the all-time high and if a retest would fail again, a short could have a decent chance to work. Unfortunately price did not unfold that way and the ES started dropping as if it was news driven. It moved back through 66 and yesterday’s close before finally providing a pullback. The pullback into yesterday close (1664.50) in the DTG 64 level provided a short opportunity and today’s example trade.
|Below is member only content. Not a member? Subscribe and join the discussion!.|
Click here to become a member