Chop Ahead? 7th Sep 2022

🖼 Daily Technical Picture 📈

➤ Since my last update almost one week ago, prices have continued to move lower (and against me). The thrust down have decelerated as prices entered the tentative support zone mentioned previously. VIX has remained range bound as a result.

➤ I still hold the opinion that prices will chop up and down around these levels. We may see spikes up and down as the choppy conditions may remain volatile. This is the scenario that played out in mid-May 2022.

➤ I added long DAX and EUSTX50 positions to the existing long exposure to US indices. My long exposure has increased to +120%. This is a moderate to high conviction level. The maximum exposure is +/- 200%, the level of highest conviction.

➤ Conclusion: I've returned back from the holidays and back on the trading desk. I am looking for a reversal higher in equities. This move maybe bumpy as prices are in the chop zone.

NB: If people are looking for a 5 wave bullish count using Elliott Wave Theory from the June bottom, this can now be discounted. Wave 4 has overlapped with the Wave 1 high.