All Access

Battling Winds and Storm Surge Now-29 Sep, 2022 Outlook

Well, the eye wall on the right side clipped us and now we are dealing with storm surge, winds and light rain. Prayers and the Lord have kept us warm and safe. Our generator is out, so we continue without power. I am writing you from my vehicle with my equipment powering up amidst downed trees and flooded streets and parking lots; thankfully, these are away from us…well, the flooded parking lots, anyway.

Here is what I see from the price motion. We are still moving with the currencies and yesterday there was a near break in the liquidity of the bond markets that reversed the flow of motion in the $DXY. Currency markets are still running the show with the dollar pulling back from highs and lots of forex traders deciding to short the dollar pairs at this time.

Two things to note-lots of negative trend so traders are fleshing out resistance on bigger time frames- and running stops. Also, positive momentum is probable to hold for a bit if we stay above these averages.

Look for higher lows tomorrow, but also a space for traders to move to resistance and retrace some of the motion.

Here’s the SPY. Pay close attention to the floor that traders are trying to hold here. There is quite a bit of selling pressure above but trade the tight time frame direction instead of trying to pick a top.

The Nasdaq does not nearly have the same amount of overall strength but people are trading these capitulative bounces. Traders are also pressing north to resistance.

The most interesting move I saw today was the FXI, and it looks like bottom picking to me. Watching it closely for more information

Trend and momentum are both quite negative

We have a number of iron condors that will continue to do well in the short run, and I hope to be able to position us well again by the end of the week.

If the storm surge begins to back off, the generator guys will be out by tomorrow afternoon and we will prepare for trading on Friday. My brain continues to be a bit frazzled with all of the stuff going on here, but working through the other side. More tomorrow. Be well, my virtual friends.