9:30 AM
The future market shows a higher opening. All indices are up more than 1.25%. But they are still in the triangle zone. The up line is 1368 for the S&P. If it breaks this line, I expect the market will do A-B-C. Otherwise, that market will trade within the triangle.
12:00 PM
So far, the market is still trapped in that triangle. The buying power is very weak. Shyuan on DQ and Hutong9.com is a very good researcher. He concludes that in major events, hedge funds preset positions. If those positions can't make profit, the next day, they will try to make the market move so that these positions can escape. He observed the events on Dec 11 (Fed rate cut) & 12, and Jan 31 & Fed 1.
Now, I believe it happened again. Last Friday was OE day, and those hedge funds hoping for a huge up day. So they preseat long positions. Unfortunately, there was no short-covering and lack of buying. Those positions are lossing money. So this morning, they moved the market in order to escape. Based on this, I expect the market will make big movement (down) soon.
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