Commentary

Pre-Open Notes 6/9/20

There was no pullback in the after market yesterday, so I didn’t take a position. I’m not going to buy into a close like we saw yesterday with the sharp up move in the last half hour.

Playing xFF and xCF is sort of a contradiction because if xFF doesn’t work and changes to xCF you wind up long for a second day after probably taking a loss. xFF will change to xCF if the daily xFF gain is less than the moving average increases between one day and the next.

The action is being driven by the strength of the trend so the exact FF5 signals will probably not be all that useful until something like xCC or worse appears.

There is nothing wrong with buying here after the overnight dip but that is a decision that is not based on the strategies. Investiquant.com has been redesigning their product and usually comes up with decent advice about playing the opening gap and forecasting the most likely daily move.

Keep in mind that the Fed is meeting for a few days; my guess is that movement will be range bound until 2pm on Wednesday. My wild guess is that the market will test levels seen last Friday (SPY 310) before going too crazy in each direction.

I’ll probably be flat for the next few days.

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