Hello Folks, Good morning. Wishing you a great New Year with health and success. This week starts with volatility coming from China, and their market was halted after -7% circuit breaker. What a way to start the new year!
Historically, Jan is a month of large moves, and it often takes the first few days to get the stage ready. So what we are seeing today may not be the actual trend of Jan, going by several past years.
We exited our long at 2049 Stop, because weakness was visible in the charts below that level. The S&P500 futures are at 1999 currently, down 37 points, or -1.8%. Such gap-down moves can’t be planned or traded. So its good that we had exited our long positions last week. Once the market stabilizes around 2000 level, then we could get an interesting trade set-up bwtween 2010 to 2090. As of now, there is no new trade. Thanks.