Getting Warmer…

1:13pm EDT: Getting warmer – just in time for the summer solstice 🙂

I’d like to see 923 minimum before I consider taking short trades. BTW, SPX breadth ratio right now is 2.4:1 advancing – not bad for a OPX Thursday.

1:49pm EDT: Channel surfer’s half pipe:

There seems to be a resistance line which – if breached might push us higher into 930. Either way this is the point where I feel comfortable dipping into short positions.

DISCLOSURE TIME: Since I don’t know if this is only (X) of {2} or maybe even the beginning of Primary {3} I have taken the following positions:

SPY July 89P
SPY Dec 72P
SPY Dec 69P

The idea here is to ride this corrective wave further to the downside (hopefully) – if it turns out that we are dealing with Primary {3} then we are already properly exposed to participate in the meat of this move. If it turns out that we are in (X) we’ll sell those December puts at our target low.

I am willing to take on quite some pain with those puts – meaning if we rally higher today and tomorrow (and possibly Monday) I will sit it out unless my line in the sand is broken. More about that later in one of my forecasts.

2:37pm EDT: Williams R% just triggered a sell signal:

However, there seems to be a buyer at 912 and it’s likely we’ll see higher highs today.

2:43pm EDT: Scratch that – the candle popped higher and the sell signal went bust. I think more upside is developing here. Cool – another opportunity to load up 🙂