Disconnection in the market.

Intraday Update:

Everything is down today except NQ. As you can see Dollar, Euro, Crude, Gold and futures everything is red. This is why I remind you guys to keep it small a week before OPEX and even smaller during OPEX week.



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Good morning,

I hope you guys were able to take profit on your short position yesterday. As we speak of the weakness in the market I do see a disconnection in the market between the inverse relation of Dollar and SPX. While Dollar was having a trend-day all indexes were off their early lows.

I do see weakness in the market but the drop in Gold, Crude vs. bounce in DXY should have pushed the equities further down. Instead indexes were showing some support at those levels.

Now I can give you my expectation and targets here but what's the use if I don't post any chart which make sense to you? So as usual here are my charts.



For those who are not comfortable with options or looking for a little longer term holding can start scaling into AAPL shares. You can add at current level next lot at the retest of $180 and final lot at $175 with stop at $170. I would set the target for profit taking starting from $205 up to $208 and/or new highs.

Oh no! I am trading shares now! does that mean I am copying the entire world who is trading shares? LOL!!


SPY broke the trendline and now trader around it. I have the fib set up which is giving me the target of 107.70 range based on the previous up move. the 107.70 area is a 50% retracement of the up move. now the key level is the 61.8% which should be the line in sand and any break and close below it will give us more down side on SPY. Here's the chart.



Now if your approach is bearish here's the set up on SPY




Here's the Gold and Dollar chart. Where you can see there was a minor pull back in Dollar over night but we did not make lower lows. In-fact, we have higher highs. Dollar's previous resistance of 76.25 should act as a support now and the target on Dollar now is 78 and change. Which should act as resistance before we break and close above it.