See there are two types of traders – the ones on the inside who make things happen and the ones on the outside who ask you what the heck just happened. Unfortunately most of us have to eek out a living on the outside and as such we best ignore the news as it just represents a feeble human need to attempt to rationalize events that have already happened. Yesterday morning everyone on  the outside got the legs cut from underneath them and by the time the smoke settled the big question on everyone’s mind was ‘what the hell just happened?’ Which was the cue for a multitude of explanations and rationalizations from pundits across the land (European elections, [...]

Last evening I proposed that the ongoing shake out was merely an attempt to scare the children. Seems like my bold claims weren’t that far off the mark as our support lines held up just famously. And that, my dear ladies and leeches, is why we follow the charts.

And further earning my keep here I also proposed a nice long opportunity on the E-Mini this morning. I hope you took it as it’s now time to take partial profits. Actually since I took this snapshot it’s been pushing higher and is almost at target – time to cash out. You are welcome! Evil is as evil does 🙂

Strangely enough – the recent gyrations on the VIX have us now [...]

We are witnessing what basically has turned into to a continuation of yesterday’s coordinated sell-off. Now, call me a cynic (I’ve been called worse) but this slow motion downhill ride is looking way too orderly for my taste. I’m not seeing any emotion here – where is the drama and the tears? In other words the tape is being walked down and I suspect this is simply an engineered shake out.

Case in point: the Zero Lite has now completely flatlined, which strongly suggests little to no participation. Translation: odds are the tape is dropping because a few large players want it to head this way, not because anyone is being forced to cover. Which [...]