The bottom line, the short-term trend is down and my short-term model did nothing today.
I’m a little bit confused about the market direction, because I saw huge equities calls right before the market close.
As the result, the CPC went below 0.80 which triggered a so called “firework” setup. Please take a look at the History of the Firework trading setup to get what I mean. Now the trick is:
- I’m not sure if the “firework” setup still works this time. Although the last time I called the “firework” was in 07/19 Market Recap, it was a very successful call.
- Because of this unusual huge equities call, the CPCE closed around 0.39 which is way too low and usually leads to a choppy market ahead.
Confused? Because trick 1 is potentially bullish while trick 2 is bearish. Well, think about it now before I inject my bias into your brain in tonight’s report.
As for tomorrow, when CPC <= 0.81, 44 out of 64 times (69%) a green day the next day.