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the market this week

The major indices we monitor closely (Dow, NASDAQ, S&P500) have five consecutive weekly positive candlestick closes. This means the week closed higher than where it started. There is an FOMC Policy announcement on Wednesday at 2:30.

This blog is dedicated to trading, not investing. Which means it is short term in nature and any prognostications we give are geared mostly toward a five day window.

That being said, because of the five WEEK run up and the FOMC this week, you can probably expected lighter volume and choppy trade until after the Fed.

I have been in contact with many trader friends that I have over the weekend, almost everyone of them are leaning short. Now what does this mean? It means they are trading long because we are in an uptrend (on EVERY time frame) but they are using a small percentage of the leverage they would normally use. It does not mean they are short yet, but believe me, they have the short gun loaded in the holster.

I will be trading actively this week, but not heavy unless volume is there.

Categories: Market Set Up
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