Looks like Financials failed at the monthly A up. Bonds confirmed an A up. VIX getting bid up. Gold and Crude below the A downs.
Maverick, as a successful practitioner of ACD approach, will you also take into consideration the news about S&P putting AAA European sovereign on credit negative watchlist while making your trading decisions now, or will you just go by that Euro made a A down at 1.3386. Thank you very much.
The Euro has not confirmed yet but I do like at news and price to determine price action behavior. Had the market blown off this news it would have given you a lot of confidence to lean on your longs, but the market is obviously re-pricing risk assets now on this development.
Alright Sir, Thank you very much. Thats what I would do too. Glad to know that you as a senior trader also follow the same approach. This new is obviously super-negative for Euro and all other risk assets by correlation. I don't have data for Bund, but I guess long Treasuries-Short Bund could be a nice low-risk spread trade in the fixed income space after this development.
Let me be clear though that I do not trade on this news. I simply observe it. As of now, all we have are failed A trades all over the place. No reason to react to this yet.
No worries. I understand and wasn't trying to get you to give them to me. I'll try to work it out myself and, if unable, take your advice and hire someone.
And sure enough we have failed A downs. A down in ES is 1252.50. That was the low tick of the move. Euro also bounced off the A down.
Still very new to ACD approach. So, just trying to observe and understand whats going on. So, thanks for commentary