16/10/2018/09:30CET
Well Monday came and went and the BTFD traders were conspicuously missing.
The PPT (Plung Protection Team) were probably waiting on the convoluted chain of command to give a clear signal as to what they should do now. -
we'll just go get another cup of coffee, and keep waiting then.
So lets take a look at the main indices as we wait for Tuesday to open.
DJI daily...
Volumes seem to have subsided but we got another red candle. Thats 5 in a row now with a correction that is 6.3% down from last week.
The 200dma is the indicator to watch.
It was breached last week and the thursday closed south of the 200dma. Trading on friday went there again, but I think some "non market participants" put their hands on the buy side of the scales to ensure that we have a "safer" close on friday. A close above the 200dma
Still looks ugly!
S&P500 daily
It was not so lucky as the DJI. 2 trading days closing below the 200dma: Last thur and yesterday, monday.
Now sitting on a 6.4% drop from the most recent highs.
Ouch!
NASDAQ
As with the S&P, the NASDAQ is now definitely in sub 200dma territory. This line will probably now act as some resistance to price the longer it lingers down here.
Day 6
If we call the start of the crash on 10th oct, the same day the DJI fell off a cliff, then we are day 6 today.
During these 6 days we have had a weekend. I am almost certain that over the weekend, the normal champagne brunches were replaced by panicked meetings between the heads of an entire menagerie of financial titans.
What did they talk about, what consensus is in ascendancy. Are they willing to now let this all unwind? Have they managed to prep enough?
We have theories, but actually little idea of what sort of contagion we are in for. But we are pretty sure there will be contagion of some sort...
Bank holiday next monday anyone ?
As always guys, leave comments, have fun and trade safe.