QuadMarket Holiday Trend Update Nov 28

Nov 28, 2016: 2:36 PM CST

We’ve seen all markets trend strongly after the US Election and Thanksgiving holiday November events.

Let’s first take a look at these stellar, persistent intraday trends and then balance the odds of future short-term reversals:

Here we see the “Quad-Market” or Intermarket Grid I use in my more detailed/lengthy Intermarket Reports.

The main idea here is to track MONEY FLOW across/between the markets for signs of Risk-ON/Risk-OFF behavior.

Clearly, we’re seeing strong RISK-ON aggressive (bullish “all is okay”) money flow.

Stocks are surging along with the US Dollar Index (the Fed will raise rates in December) while the Risk-Off or safety haven of US Treasuries collapses.

Gold also – sometimes a safe-haven, sometimes a bullish play – collapsed $100 from its per-election peak.

With these reactions (money flow trends) firmly in place, we’re now balancing these persistent trends – which cannot last forever – against the odds of at least short-term reversals on momentum divergences.

If you’re trading these markets from a short-term or even swing-trading perspective, create your trading narrative (and thus actual trades) around the “Will the Trend Continue or Retrace?” point of view.

Logic and momentum suggest a pullback is more likely than ongoing continuity but be equally prepared for both.

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Corey Rosenbloom, CMT

Afraid to Trade.com

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Corey’s book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).”

1 Comment

One Response to “QuadMarket Holiday Trend Update Nov 28”

  1. Musharaf Says:

    The trend still remains very strong, but we just need to make sure we figure out everything before we enter. I believe next week too is going to be very crucial to how things go about and then once Trump finally takes over. I will be very careful with how to go about doing all these things. I like it so much thanks to OctaFX broker with their fascinating features and facilities that include having small spreads from 0.1 pips to high leverage up to 1.500 while there are several other benefits too!