Interesting correlation with European Markets:
Recently the European markets have been leading the US markets, there was a time when it was the other way around, how long this lasts , who knows. Has also been commented upon by some lady traders like Linda Raschke , Nazila Jafari (Top
Dax, S&P, Euro trader and a coach, shame she prefers to coach women primarily:rolleyes:, interviewed in
www.traders-mag.com, Jan 2005)
Linda also in one of her interviews states "The
Dax is more indicative of Dowtype stocks, while the EuroStoxx is more indicative of the S&Ps and is actually the more active liquid trading contract by about 3 times", she notes,
"What you'll find is, if you pull up a 15Min Eurostoxx chart and observe a strong uptrend, I could just by the S&P futures right then and have very high odds of a winning trade"
Lets see the Monday 19th Nov action via TT:
1. Wed 14th Nov ---"High to Low" ----- Sell day ??
2. Thur 15th Nov ---"High to Low" -------SS day
3. Fri 16th Nov ---"Low to High" , close near to open ----Buy day ???
4, Monday 19th, "Sell day anticipated --- Low to High"
On the
dax market gaps down , so as per TT, the shorting opportunity would be after a rally, which occurs in the 1st hour and creates a lower high near the previous days High, ideal place to short, the prices then head south for a drop of over a 100 pts. Hence this would conform to TT and would be a Sell Day,
5. This weakness is mirrored right from the open on YM and ES. Now can this be considered not only as a sell day but also one where the Low of the Buy day has been violated, if so what is anticipated for Tuesday,
6. Following the ideal sequency of SS day, buy day, sell day, it should be a SS day or because of that violation of low of Buy day, could it be a buy day i.e test of low, or gap up, sell off, formation of higher low????
Any comments from TT experts here.