Axe Throwing Tuesday, page-12

SPI200 Commentary

Follow or Fade!

SPI was closed Monday as Australians enjoyed a long weekend. Most of the action that happened while the SPI closed was in the Nasdaq. The FAANG stocks which were the bulk of the rally were heavily sold off Friday and last night. This action shows how a very concentrated trade can cause huge volatility when everyone wants to exit at the same time. There was some sector rotation happening in the US and that will probably be good for the XJO as Funds look for assets that have been under performing of late. The XJO is still stuck in the lower end of the recent sell off, so till the price can rally above 5700 and be comfortable above that level, I am still very cautious. So I think we stay within that lower range for the day. For todays trading I am looking to buy dips around 5660 and sell rallies around 5700