Stock Market Update | Risk Is Being Put Back On

Yesterday’s key rally on stocks saw some major gains in the financial markets with Goldman Sachs and JP Morgan (as was predicted on my facebook page) with their share prices rising by over 8%.  At the moment on the S&Ps (ES) we are over-extended and I see the temporary upside as being limited, although a test of 1300 is quite likely (see above video).

I am not looking to get too aggressively short here as that would be fighting the upward momentum, but a short-term pullback to key support zones such as the 21 EMA is likely where we could implement some long positions.

The AUDJPY carry trade has also broken through key resistance to the upside and the US 30 year Treasury bond market took a tanking yesterday, indicating that risk is being put back on by the hedge funds and the big players.


  1. How do you use TTM indicator and what is it exactly?

    Also would you be open to share your trading results online (3 yrs-1yr-6 months)?

  2. Hi there. I only use two of the TTM indicators – the trend and the squeeze. They work for me and the strategies that I use. The TTM trend shows you moments when the trend is likely to change, and keeps you in that trend. The squeeze shows you when the markets go from low to high volatility (and reverse) – when red dots turn green. I like to position myself for an entry when this happens so I can capture the majority of that momentum. As for my trading results, absolutely I would be happy to.

  3. Alessio,
    could a SPY pull back to 120 be possible this week? It looks to me like we’re forming head & shoulders formation and it’s kind of in very overbought formation.

    It went up so quick do we see a correction to 120 or low 120 to bounce off the first support line or do you think it could break 130?

    Right now every where I look i can’t really get a clear picture. It’s a 50/ 50 camp of Bulls & Bears contradicting each other on markets.

  4. Hi Alessio 🙂

    I was looking forward to this Thursday’s webinar but can’t join at the scheduled time. Will you keep it as a video here afterwards?

  5. Yes I will try to do so. We may be scheduling a later time one too. Thanks.

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