Obama changed the stock markets’ mood over the Labor Day weekend by deferring a decision to strike Syria to the US Congress. Global markets became bullish as the US markets were closed. The ES opened far above it’s Friday close and was contending with it’s average range. My expectations were that the bulls would try to take prices higher; after all, the US markets have been closed for a long weekend and the ES could possible trade twice as far today. The bulls took the ES into the DTG 47.50 level early and the institutions were buying. Each rotation up was a little higher for about 20 minutes after the open before a short order flow opportunity unfolded, showing some weakness. There was 10am EDT ISM and Construction Spending numbers in about 10 minutes, so the trade could turn into a coin flip and go either way. My expectations at the time were the bulls would retest the day’s highs, but there was the possibility of small targets; particularly in news volatility. The numbers came in strong which is good for the economy but supports QE tapering from the Fed and prices moved down. The opportunity eventually could have taken advantage of the ‘surprise’ coordinated PR campaign by US Congressmen to support Obama and a strike against Syria; unfortunately I was long out with my small target.
|Below is member only content. Not a member? Subscribe and join the discussion!.|
Click here to become a member