Our trading this week at Volatile Mood is informed by the following:
This week is all about the news (or data), especially news outside of the United States, and building tension surrounding it. People are feeling generally anxious as the week begins. There should be a shift around Thursday as the background news becomes more volatile or violent, and people begin to feel more cautious.
The way this pattern plays out in the market is not exactly bullish, but is markedly different from the previous week. There should be a noticeable shift on Thursday from what takes place on Monday through Wednesday. Whether the “Aversion” taking hold on Thursday manifests as short covering in the stock market or a sell off will depend on how the market does on Monday-Wednesday.