I jumped the gun a little this morning and anticipated that my day trading signal would remain bearish for a second day in a row, which in turn would confirm Friday’s move. My indicators remained firmly negative and I couldn’t see any way they were going to turn around before the close so I shorted some QQQQ and DIA, however I kept my positions somewhat small given the Fed meeting tomorrow. I’m not going to discount some wild moves tomorrow and I want to have some powder left to short more tomorrow if we have some artificial strength at some point intraday.
All in all it was a boring day and I slept in because I knew I wouldn’t be doing much trading as I was essentially waiting for confirmation that the new trend change was going to take place. It’s going to be interesting to see how the Fed meeting influences the markets and my trend indicators.
I wanted to point out when the $NYMO peaked late last month I felt like the momentum of the move would carry the indexes higher and they did just that. That was the easy money trade. Now you can see negative divergence between the price of the Dow and the $NYMO, which could spell a move lower over the coming weeks.
Whose with me on the dark side, or is everyone waiting to see what the Fed does?
