G’day Surfers – it’s begun!
There really is only one word to describe yesterday’s market – UNTRADEABLE! No entry was contemplated as the lack of liquidity became evident very quickly. It may have been a simple case of Mondayitis but could well be the seasonal slowdown beginning. The Daily range of less than 45 pips speaks for itself & I am almost ready to close the trading a/c for the year based on the evidence to date.
Given the non event of yesterday, I could simply cut & paste yesterday’s appraisal of the market as I see it. Certainly the Resistance provided by September & October highs is yet to be broken and the prospect of pullback to1.3115 appears highly likely. The lack of liquidity however, is an enabler to a lack of technicals so nothing would surprise at this stage. It’s essential to protect our capital right now and that means waiting for the market to show it’s hand, if indeed there is to be a market this week. Daily Pivot has tested Price Action, rather than the reverse and frankly, to enter the market at the moment is pure speculation and not a part of our strategy. The recent Highs & Lows (if you can call them that) have been formed by market Price INaction rather than the opposite and are therefore unreliable. Perhaps we are witnessing a combo of market uncertainty brought on by unusual events like Fiscal Cliffs and let’s not forget that everyone’s busy maxing out their credit cards on long lunches etc., safe in the knowledge they won’t need to pay the bill after Friday, when the Mayan Calendar expires!! So: Technical – mmmm – not quite. Proceed with caution, if at all – DEFINITELY.
The Day Ahead
Hopefully, it’s perfectly clear that I won’t consider messing with this pre-Christmas market until I see some liquidity AND direction. Should that occur, I will look for (at least) a clear setup at my Hotspot. I will ignore any movement inside my reliable Trendlines as these areas have “come in sucker” written all over them. I’m not holding my breath but I’m willing to have a look at Price Action today, prior to packing it all up for 2012.
High Impact News
Trust your Tuesday is TERRIFIC.
Guess what? We made profit & nice pips yesterday. Yes, nice beginning of the month for our accounts. As you can see from the image attached (BEFORE/AFTER) our analysis was perfect at the pip once again. We also made a video about the trade we placed yesterday and the “Pre-ABC” concept. Check it out here.
Pivots are now in perfect bullish set-up, but, as you can see from the chart attached, Daily Pivot has not been tested for 2 days in a row, and we know very well that this is very uncommon and against probability. We are in a classical NLNS situation. No Long No Short. No Long because I need D-P to be tested before going long, otherwise I’m going against the odds. No Short because the sentiment (pivots) is still bullish. Price action is finding resistance on a level which was support last weeks (check chart). This level and the support level below are the crucial levels of the day.The Day Ahead
I will wait for a pull-back at D-P (without trading the movement from here to D-P). Once price will hit the level I will look for reason to buy. Check the Play of the Day. If I will see a bearish SurfingThePips.com Secret Pattern below the support trend line I will give a small hit to a short as well.
High Impact News (C.E.T.)