I have no idea why this works … but significant lows in the Bond market are followed by significant lows in the stock market 20 days later. The chart below shows the Bond market and the blue vertical line shows what was happening 20 days ago. You can read more about the Bond market and Emini trading here.
Bond Market with 20 day Delay
My swing trading oscillators (TRIN, Put Call Ratio and Smart Money) have now all turned up. Check out the Emini daily chart below – Better TRIN early again.
Swing Trading Oscillators (Emini daily)
At the beginning of the month I was expecting a pullback in the Emini on the 135 minute chart. That pull back rally turned out to only be a one day event and we never got the pull back signal. This time I think we’ll get it – volume over the last week has been huge, sentiment is at an extreme low, the crude oil rally has cracked and valuations against the bond market are attractive.
Hilbert Sine Wave (Emini 135 minute)
Having said that, there was a lot of high volume churning going on at the end of today’s trade. We could see the Emini fall back at the beginning of tomorrow’s trade and I’m looking for support around the 1,230 to 1,235 level.
Good luck with your Emini trading.