....... Sell again after Labo(u)r Day .............

So , finally back from a summer of travel ...what did i miss ??

Its been almost 2 months since i last posted .. If you remember i left with a short GBP/USD position a little higher than where we currently stand with a stop above the notable descending weekly / daily down trend broken after the brexit vote . Well guess what ? Having spent the last 7 weeks bumping around in a pretty tight range we now find ourselves back against these massive levels see daily and weekly charts below

Clearly a very key time for this cross .... i remain short but will be very quick to cover and reverse long on a clean break of 1.3426 .

The post Brexit stock move has been far more interesting ... An initial slump followed by what can only be described as a major squeeze ... Volume over the summer disintegrated (At least 2 days in Aug the benchmark $SPY etf traded less rhan christmas eve 2015) and the market ground out new highs in most major US indices in what looked a very painful manner ..... bears, as always very keen to jump on any downside , lows made first 2 hours of US trade , squeeze into close , repeat, seems to sum the summer up but now with Labo(u)r day behind us we have the chance for the real move and i wonder if it will be the move we were all looking for in late June ??

See long term FTSE 100 chart below ...

I See the squeeze , i see the classic pain rally but look if this was an index going places we would have cleared and held above the series of old highs by now (6958 High December 1999 , yes 1999 !!) . I hear the index has changed, i hear the weak pound benefiting multinationals i hear all that but good old price action is saying to me that perhaps we get our Brexit selloff into year end .....Technically stacks of resistance here.... im selling here (6890) , ill add at 7000 with a stop at 7150 ,, if im right and this plays out i'm looking for a retest of the post brexit low around 5700 ... and which point we ll re consider ...

Until next time .....