Climbing Mount Everest

1:00pm EDT: My apologies for the late post today – I had a horrible night after getting on new medication and only managed to sleep a combined four hours or so. Quite frankly, for the rest of this week I’m going to have to reduce my activities here to one post a day as I’m feeling the burn a little bit. But so far it’s encouraging to see that you rats are doing just fine during my absence which is a testament to my continued efforts to encourage self sufficiency in trading.

As I’m typing this the ES and NQ just breached below VWAP and it’s possible that scenario blue is now in the works – which should be a quick retracement enabling more retail dip buyers to swarm in and take this thing higher. The NYSE A/D ratio is fairly weak today at 1.8 – especially with the Friday close which ended at 4.06.

If we settle out here and extend this wave even higher (i.e. blue) then SPX 1045 should pose at least some resistance. I would like to see this one touched before I add more Jan/March puts.

Having spent some of my childhood in Austria I was early on fascinated about the adventures of various mountaineers trying to conquer the peak of Mount Everest. What’s interesting is that many expend an almost inhuman amount of energy and resources climbing 29,000 feet, only having to turn around a few feet away from the top.

Watching the tape as of late it almost feels like climbing Mount Everest – the air is getting thin and every step higher seems to expend more calories. Yes, we do get those low liquidity pushes higher, but many of them are sourced/spearheaded overnight – it is evident that liquidity and momentum support in equities is narrow and potentially volatile. Which is evidenced by the sudden drop we’re seeing right now as I’m typing this (ca. 1:15pm EDT).

3:15pm EDT: Seems to me we’re painting an a-b-c right now, which should be Minute {ii} of Minor C:

Possible targets I see right now are 1020 and 1017 – just visually based on equality. As most of you know I usually don’t count below Minute degrees – it gets a bit too esoteric.

3:57pm EDT: The ramp up attempt has failed – very interesting. Little reminder that I won’t be posting a wrap up today – too exhausted. Talk amongst yourselves – I’ll chime in later tonight.