This is the minute chart on the NQ. You can see where the selloff really got going. With just under an hour left in trading, we could see the government step in again with a rescue but there just is no guarantee. I had hoped we would get a large enough rally today that we could get knocked out above our entry but most of us suffered a small loss. I suggested going small this go around as I realized buying this late in an intermediate cycle has more risk associated with it than in the first or second cycle. The safest strategy moving forward will be simply to sit on the sidelines and wait for a real ICL.
The intermediate cycle for stocks is 24 weeks old. The intermediate cycle for gold is 25 weeks old. The intermediate cycle for crude oil is 20 weeks old. The trading is going to be difficult in the major things we trade.
There are quite a few people who are short the euro and I along with most of them were getting a little nervous, but the short term indicators suggested the euro probably did not have much left in the tank. The euro short will benefit from a stock market selloff as that should force the dollar to rise. That is just something to keep an eye on.
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