Elephants Trumpet. A week before options expiry, markets usually make a dependable low, for a rally into the triple witching expiry, squeezing the bears. This december could also be the same as the last december. A rally into the options expiry and closing at the highest high for the round.
ES – Can still hit higher? Is the Rally towards 1350 on the ES, On or Off. Are we going to see an elephants trump once more before the Options Expiry. Emini is sitting on a nice 60mins upchannel, which makes key support 1245-1258 region, pretty dependable and hence, need to see a break before taking a long dollar + short emini trade. Till that happens, trade the short dollar, long stocks trade.
This Rally has legs. The Dollar is firmer on this round, the last time the stock markets got at the levels, the currencies had rallied and we saw, 1.41 euro, 0.86 on the swiss, and 1.60 on the cable, the second time around, we have got here, near the higher levels of the past three months and we can see, the weakness in the currencies, due to the european fears, and euro is near its lows, so is cable, and the swiss, a move below these current levels, suggests a move towards new lows for the currencies.
Must be painful for those, who are short on the DLR and