Got long at about the mid point of Tuesday's range. Just added to long DAX position after first hour of trade today (Wednesday). Now just sitting pretty.
Wednesday was a nice up day as expected. We saw a bit of short covering late in the session on the DAX. Im now sitting on a nice profit. Looking to exit on Thursday. Will Sell into any strength early on Thursday. Hopefully on a retest of Wednesdays high. If we take out yesterday's high, even better. Friday likely to be a down day as traders get flat for the weekend.
It's almost assured that the market will go lower in the next 8 weeks, but for the time being, the Dax needs to fill the volume gap around 7250-7300. I'm expecting a slight rally into this zone and then I think we'll see a lot of short volume come into the market in preparation for the next leg down. Be warned though, if we get an early announcement that the US is going raise the debt ceiling, we may see a three or four day rally that will hurt the shorts.
Closed out long position. Probably done for week. I'm expecting some weakness friday, but not sure it will be tradeable.
There is plenty of fear in the market. But no new information. I think we could see a nice rally this week as the debt ceiling issue gets resolved.