As I blearily grabbed the iPad from the side of my bed this morning, before I fired up the quotes, the most cynical part of myself thought: “Just watch. The ES will be green.” And, yep, sure enough, the market has rocketed about 25 points all night, because God knows there’s nothing more bullish for stocks than one of the biggest terrorist attacks of all time on a major Western city.
Of course, it wasn’t Friday’s mayhem that excited people into buying equity futures: it was the Bank of Japan falling all over itself, printing trillions more Yen to buy US dollars. The monster bullish engulfing pattern on the USD/JPY is shown below.
In short, session lows were met basically the moment futures started trading on Sunday. Mercifully (for me), ES and NQ have sunk back into the red, and – even more important – crude oil has completely unwound a monster rally it also did last night.
Hopes spring eternal in the bearish breast. Especially the Slope of Hope.
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