Thanks A Lot Kim Jong Un!
We all appreciate Kim Jong Un for his megalomaniacal disposition, his sporadic bouts of military brinksmanship, and especially his unique talent for randomly causing widespread fear and panic all across East Asia. What’s not to like? He’s big, he’s bad, and he’s got nuclear missiles with laser beams on them. But there is such a thing as professional courtesy among super villains, okay? So he’s got to start sending me a memo or something next time he launches another missile, as they keep messing with my weekend campaigns.
If you squint carefully you can see the impact crater right on the chart where I got stopped out, with an extremely lousy North Korean fill I may add. If this keeps going on I may have to start hedging myself over the weekend via some disposable front month puts. The horror! Of course we all know the E-Mini is going to fill the gap sometime today and then happily continue upward – without me/us.
You owe me KJU!!! And I want some of those genetically engineered sharks you promised me at last year’s Villain-Con (yes it exists but you’re not invited).
Alright seriously now: the volume profile on the E-Mini shows us back in our favorite whipsaw zone from hell which drops off rapidly below 2460. As long as we remain above that equities are most likely going to continue pushing upward. A breach of the volume hole and a close below 2445 leads us lower, however at the current time that scenario is pretty slim (until KJU launches another missile I guess).
Last Friday VIX short traders were already looking forward to single digits but those have now been postponed until further notice as it’s opened slightly below 12 in early trading. The weekly panel shows us IV spikes about every other month on average, the magnitude of which seems to be diminishing however. I’ll be sure to cover that topic in the near future.
Then again Kim’s hydrogen bomb test produced a pretty nice gap higher on our silver campaign, which is the sole reason I haven’t already spilled the secret location of KJU’s intercontinental missile program to my contacts at the Pentagon. Don’t tempt me, Kim – there is a juicy reward after all and I have got a business to run. Anyway I’ll be moving my trail to slightly below the gap which ought to keep me in the game for now. My main concern at this point however is that upper 100-day Bollinger near 18.1 which is still pointing down and thus may produce a bit of resistance.
Otherwise there isn’t really much to report at the current time. If things remain quiet today I’ll probably put together an update on the momo front tomorrow. Until then!