Thursday’s trade was wild — and very wild!! Yes, the CPI data did produce a wild ride in both direction and more than once in both directions. As a day trader it was a glorious day. I have added some labeling to the charts updating where within the minute “c” waves the NQ and ES are and what can we expect tomorrow. I added Fibonacci extensions to the existing Fib retracements to “fine” tune resistance that may complete the Minor 2nd waves still in process. I again move out to the Daily charts to give some perspective to the moves themselves and what lies ahead.
Tomorrow is expiration and the volatility should remain fairly elevated – don’t be fooled by the declining VIX and associated indexes – the moves in the equity indexes, the treasuries, and precious metals produced some excellent scalping and short swing trades. I would expect the titans to lead the rampage and that would include both up and down. Again, it feels like we are experiencing a stronger institutional aspect to moving around large amounts of money within the treasury markets and equity markets, plus precious metals caught a strong upwind today as well.
Monday the markets are closed for Martin Luther King Day.