We wrap up a fantastic month on Monday. This week’s video brings many great set ups and if there was no overhanging news, I would consider this a great sign for the markets. The news that ranges from debt ceiling debate, budget talks and Italian government news which could be the wild card and really shake things up.
Just today, five ministers from Silvio Berluscomni’s political party have resigned. This in effect brings down the government of current prime minister. I have to think this will effect the European open Sunday night/Monday morning and the overnight S&P futures. If it doesn’t, it might be a great tell on where the market will be heading in a short time.
Last year, we dealt with the same issues that face us this week and the market did not like it. No one did. It was a circus to see the political grandstanding day after day. We know how it ended, and know where we are today. The question is do the markets get fooled again. Even though we have great opportunities in the charts this week, the news could negate all that. The music is playing again and for this week I would circle the chairs real close if you know what i mean.
Looking at the markets in general:
Monthly Bias; Positive with embedded stochastics
Weekly Bias: (Very Positive) Rising coiled stochastics crossing back up
Daily Bias: (Neutral) Negative Stochastics. Holding 20-50 ema, Positive divergence playing out on price/stochastics, and possible stochastic trend line bounce.
Hourly/60 Minute (Slight Positive) Oversold but embedded, 60 min time frame expecting bounce soon.
Outside News: Negative
This week’s Watch list Video for Members here
In other news… This Sunday Stock Jock and Roll will be doing a show on www.daytradingradio.com @ 8:30pm Called “Stock Jock and Roll Theater” I am hearing this will be a combination of Sports, Markets and good fun. Also futures will be open and we could see if there is any reaction to the news out of Italy.
Andy from Finland killed it this past week. He has been our guest trader on the platform trading live and calling all the trades. (Es futures he trades )You got to wonder how he does it? Its a pleasure to have him on again this week as Guest Trader. Monday-Friday.
I have a best bet for this week to it’s in the video