Over the past year we have seen a many traps and tribulations on the equities side, most of it lacking any sense of meaning or direction. Our patience has been stretched, minds confused, fragile egos and opinions bruised, and most certainly a many trading accounts have been heavily eroded in the process. One would think that at some point there ought to be some type of resolution. Well, think again!
Once again the ice wall blocking the way to SPX 2100 and beyond proved too steep a hurdle for the bulls. Yesterday’s lackluster session was a bad omen in that it showed only obligatory participation near such an important inflection point. That’s not how to storm a stronghold that has held what at this feels like aeons
What goes [straight] up must eventually go down. However when exactly a symbol which has turned exponential runs out of fuel is the more important question. Once emotions reign high all bets are off – or in this case all bids are on. You may recall that I was pointing at gold the other day and suggesting that we may see another wild push to the upside.
Which is exactly what we got and I’m pretty glad I got out of my short position at break/even. We are now seeing an obligatory pullback but medium term this thing may have legs.
Just FYI – the P&F claims that we met the bullish price objective. However I wouldn’t really think [...]
While trading the swings has been fun in the past two weeks I can understand if some of you may be running out of patience at this point and are perhaps even considering to throw in the towel. As a trader it’s very important to constantly self-analyze your emotions – in a way you have to become your own personal shrink (unless you can afford one sitting next to you during trading hours). It’s certainly frustrating to be just ticks away from a juicy long setup, only to be followed by a systematic sell-off. A day later we are a mere bagel throw away from a weekly short setup, and up she goes again. Whatever your emotions tell you – do your best to ignore them. [...]