What has happened in the markets in the past few days? Panic. This is the right word. Race to short selling or profit taking on the Nasdaq that has scared many traders and given satisfaction to shorters. But in reality, in my view, it is. normal administration. It is there, and it is absolutely normal, that markets occasionally flex. Perhaps the volatility and speed with which they do so in the latest period scares traders, who still have the specter of the March descent weighing on them.
The Dax finally broke 13000 and then began its descent. So for now it is a retracement, a classic mean reverting of the index. The same thing could be said about the Nasdaq. Both tend to move back toward their average price (fast average, we jumped at the chance to short it in the premium channels). On climbs these things are regular. That is why when doing intraday you have to follow the market and not anticipate it too much. 12600 (approximately) for Dax we could see them. If we were to break then we could talk about 12000/12100. Otherwise one could go back up, regular in the climb, attacking the masses. Same with the Nasdaq, which, despite good quarters, blew a hole.
Moderating levers is always a good idea in the summer, where cash flow gaps could play havoc with our finances.
Oil is also trying. It has been trying for quite some time now to break the 41.5 /42.5 mark, highs that have often been rejected.
Two words should also be devoted to the record-grinding Gold. Our first target of 1800 was taken and also our second target of 1900/1920. The yellow metal could continue to rise. Various forces may come into play. If markets recover next week, gold could stabilize and leave something behind. But nothing is certain. Silver also shoots up and same thing palladium and copper. Metals are doing great. The reasons can be found in the news channel.
Now it is useless to go overboard with Otelma Wizard predictions. Uncertainty is obvious to all. Those who say they know are lying. Not even the Bigs really know what might lie ahead. We ride the waves of the markets as well as the waves of the sea.. Although these days some escapades on the beach are due.
Have a great weekend and a happy summer!