NetFlix has shown quite some strength last a couple of days. It has stopped being the weak link in the FANNG group pulling the Nasdaq down. Now it is the Facebook being the weakest of the bunch.

The Apple is still leading the pack be it with less momentum. And the Amazon has been boringly steady that it is circling in the green (strength) zone for the last few weeks.

Once the high momentum names, e.g. FB, NFLX, GOOG,
back in momentum, we are going to see the Nasdaq ripping again.

shrekchenbin 

Some fund is aggressively selling the Euro future in the quantity of 3500 contracts. The execution starts from 10:30 and concluded at 11:00. However, this selling looks completely mechanical to me as the double top formation at 11716 is a weak structure and is vulnerable for a stop run.

The squeeze is on. Paper loss for this fund is mounting to hundreds of thousands now.

Tuesday morning of the last week of August. The kids are going back to schools this week on the Eu continent, but the European daddies/mummies are apparently still in hangover from the summer holiday.
The volume is still extremely light and it is still difficult for the market to get traction in neither direction.
Hence the wise thing to do is to scale back the risk and trade less while watch more.

Good reading regarding the 6E sell-off (I see a lot of 2 and 3 digits on T&S at this time). After this huge (contract) sell-off worked off, the 6E again switched to his short-term up-trend. Regarding paper-loss, you can be sure this big guy isn't thinking in hours .

The ES is still grinding higher with a sign of count rotation.
The bullish grind has been running for more than 1 week now and is getting a bit extended.

If there is one indices would have to crack first in order to open the door to meaningful correction, then it must be the Russell.
As the run after the break of the 1725 level is quite shallow. If it were to trade back below 1725, then it would trigger a long liquidation flushing the index easily below 1715.

tr8er 

Good reading regarding the 6E sell-off (I see a lot of 2 and 3 digits on T&S at this time). After this huge (contract) sell-off worked off, the 6E again switched to his short-term up-trend. Regarding paper-loss, you can be sure this big guy isn't thinking in hours .

You are right. The people with such a deep pocket usually does not care about the paper loss at all.
But it is fun to watch the market tends to trade against those big tickets in such a predictable way.

1. Last week, DAX had a failed run at 12600 creating a significant lower high and trapping many optimistic bulls.
At this moment, the path of the least resistance is to the downside poised to take out the weak double bottom structure at 12100. The buyers could try to lift the market between 61.8 and 78.6 fib retracement level. Therefore I foresee a bull bear battle to occur sometime tomorrow around 12250 level.


2. the two weeks long upswing in Euro has dissolved, after the big long liquidation break on Friday afternoon. The buyer tried to hold the Euro up above 1.1600 key round number. The reaction today is not with a lot of conviction. It could be due to the lack of NY liquidity. The 1.16 level is the key battle ground tomorrow. What I want to see is a selling climax or swift stop run to 1.1580 and then quick bounce to tell me that a good low is in and Euro is ready to move higher. Otherwise, the stops behind the swing point at 1.1550 would be run with a high probability.


3. Pound is too vulnerable to stand firm above the key 1.30 level. It would be interesting to see how the market would react when it trades below 1.2800 level. Could the bulls be able to lift the market or not.

4. The Friday dip in ES was merely a stop run and it was quickly bought up my the bulls. The path of least resistance is to take out the high and test 2920 level.
All dips are still bought indiscriminately by the bulls. Hence the strong H1 sell bars are used by the bulls to trap short sellers squeezing the market higher.

Yesterday was a balanced day in euro and DAX. Hence the theme of the day is to follow the direction of balance break out.

In Euro, the first leg has already come to an end. The play of the day is to anticipate a corrective structure to the upside and get in after the break of that structure.



DAX has opened with a bullish bias. It is likely to have a reaction from 12385 level initially and I am looking to buy pullback into the corrections. Preferably at 12350 the break out level.

The break down in Euro hypothesis is supported by a quality break out of a bull flag formation in Dollar index.

shrekchenbin 

Yesterday was a balanced day in euro and DAX. Hence the theme of the day is to follow the direction of balance break out. In Euro, the first leg has already come to an end. The play of the day is to anticipate a corrective structure to the upside and get in after the break of that structure. DAX has opened with a bullish bias. It is likely to have a reaction from 12385 level initially and I am looking to buy pullback into the corrections. Preferably at 12350 the break out level.