Alea Iacta Est

I’m going to cut right to the point this morning. Yesterday near the open equities were at the edge of the abyss and the odds strongly supported continuation lower sometime during that session. However, later that day I suddenly started seeing divergences on the hourly Zero indicator which strongly suggested an impending short squeeze and to which I alerted you to in my early afternoon update. Which is exactly what happened but overnight futures have dropped lower yet again and at this point it’s anyone’s guess to where we head next.

Given the recent gyrations there is not predicting where we swing next or when this thing finally picks a direction. What I do know however is that I am personally starting to feel reactive as well as conflicted. One one hand I would like to keep you guys ahead of the tape as much as possible, and thus far I believe that has worked out quite well, despite some highly volatile and unpredictable tape. However, after some meditation and self examination this morning I feel that I am now crossing into ‘chasing my own tail’ territory and that attempting to plot a course here would be counter productive.

Bottom Line: I am still short from ES 2040 and my stop has been moved to break even. And that’s going to be it – I am not taking out any long positions here and I will not touch equities again until we are trading either near 1900 or above 2060. The woodshed is churning on all cylinders and the only way to win is not to play.

It's not too late - learn how to consistently trade without worrying about the news, the clickbait, the daily drama and misinformation. If you are interested in becoming a subscriber then don't waste time and sign up here. The Zero indicator service also offers access to all Gold posts, so you actually get double the bang for your buck.

Please login or subscribe here to see the remainder of this post.

Cheers,