ABSENCE MAKES THE HEART GROW FONDER
I have been tied up in all sorts of other things here in the last couple of weeks so I have missed alot of posts. When I combine that with the demise of Blogger that I have mentioned, I just dread doing these right now. I just don't have the time.
Here we have the SP 500 which is in an interesting spot. The trend oscillators are showing an uptrend and a pullback, yet we are also into a good resistance zone. There is a school of probability distribution called market profile that tracks how often markets trade at certain prices. Once something trades in a zone alot it tends to have a comfort in that zone, hence it can stay there for awhile. It is not a good probability in an often frequented zone to take trades because false breakouts can often happen. That seems to be the case here. I was long for the 3 day upmove, exiting Monday once we got into this highly visited zone.
As much as I am tempted to look at continuation longs right here on this pullback, I am just not sure at this point about doing so.
I have been looking for a long position in the Dollar as it continues to tumble.
Alot of oscillators are diverging against the trend which as I have written about often in the past, is typical. However, when I see it get this pronounced I look for counter trend trades so that is what I am doing here. I have had orders in to buy strength the last 3 days and none of them have been filled. I will continue to look for longs here as long as this divergence persists. If I lose I lose. We often get huge reversals from these types of situations, so that is what I am looking for here.