DOW fell in Europe exactly to the support point 12.897. When US opened the DOW rallied from this low during 2 hours to 13.025. During the next 4 hours the DOW traded sideways and reached today's high at 13.025 just 55 minutes before the close. The market then fell back to end at 12.981.9.
We now have a double top at 13.030.6 and a double bottom at 12.879 for the last five trading days. Normally this should be the trading range for the next few days. However the US rally Monday was not normal trading in my view but an intervention by professionals to take out all stops on short positions in Europe, which was successful. It had nothing to do with fundamentals at all.
Since the big players are active now it is difficult to tell the next daily move. The trades that are used is computerized and can go below or above key points and then suddenly turn around. I will watch Tuesdays trading and blog as usual and do my best.
We now have a double top at 13.030.6 and a double bottom at 12.879 for the last five trading days. Normally this should be the trading range for the next few days. However the US rally Monday was not normal trading in my view but an intervention by professionals to take out all stops on short positions in Europe, which was successful. It had nothing to do with fundamentals at all.
Since the big players are active now it is difficult to tell the next daily move. The trades that are used is computerized and can go below or above key points and then suddenly turn around. I will watch Tuesdays trading and blog as usual and do my best.
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