2013/11/07 DAX Double-Whammy UPDATE: Squeeze fired long on interest rate news

 UPDATE: DAX and its squeeze release double-whammy :) 

(compare with post this morning)

2013/11/07 DAX Double-Whammy Squeeze: 4h and 1h power waiting for today's news releases

 

The DAX and many other indices are setting up for a double-whammy: pressure is building before the news releases today, and the indices are squeezed into narrow ranges. The DAX has a Squeeze in the 1h and the 4h chart, just waiting to release the pressure in one or the other direction. Two-sided strategies that speculate on larger movements are favored in this situation. 

2013/11/04 DAX 1h-Squeeze breakout - the impulsive move has started

 

After getting squeezed twice in a short time, the DAX has finally blown the pressure valve an moved impulsively to the downside this morning. And, there might be much more downside potential! Also check out other indices like FTSE 100 and S&P 500, the impulsive moves are similar and the downside potential too. 

 

See also my earlier post of Nov 1, 2013

 

2013/11/01 DAX 1h-Squeeze forming - be prepared for impulsive move

 

The DAX has entered into a 1h-Squeeze (the Bollinger Bands entering into the Keltner Channel). Frequently, during a squeeze pressure is building up that needs to be released in an impulsive move, once the squeeze fires to one or the other side. The TRIX and the MACD indicate decreasing momentum, so the squeeze firing to the downside would be the more likely scenario. 

 

Option traders like squeezes, because they mean fast and furious moves - great for long delta 70 options plays. So be prepared ... :)