There is not a lot to add to Monday’s note in terms of US economic news—the government might be divided, inflation might be slowing, and Trump might face DeSantis for the Republican nomination, writes Ian Murphy of MurphyTrading.com.
Internationally, China and the US agreed to disagree at the G20 summit in Indonesia, but at least they are talking. Futures took a dive overnight when a missile landed inside Poland and set alarm bells ringing in NATO, but it now appears to have been a stray launched by Ukraine.
Meanwhile, the Help Strategy bull trigger is performing as well as can be expected. The trailing stops on Micros and ProShares Ultra S&P500 2x Shares (SSO) are above the entry point and the first two targets have been reached. Now we must decide to let the final ⅓ run on the trailing stop or to close out at the 3ATR (black dashed lines).
This trade might be unexpected, but it has done nothing wrong from a technical perspective. The Pessimism indicator has remained flat (arrows), and the daily lows keep ticking up, that’s all we can ask for. We just need the patience and discipline to stay with it.
Learn more about Ian Murphy at MurphyTrading.com.
