Little Point Of Recognition
Little Point Of Recognition
Strangely, just because I am expecting a little bounce here (or a big one – if we bears are wrong again) many of you mouthbreathing rats seem to assume that I’ve turned into a bull now. Nothing could be further from the truth. Let’s look at the evidence:
This looks like a textbook third wave to me – please note the ‘point of recognition’ which is often a tell tale sign of a third wave in development. I expected a continued drop yesterday already and as evidence I have not moved my scenario lines (or just go back and read my old post – LOL). Yes, this thing could easily continue downwards into 1040 but we are now running into support and 1040 would most likely be where the bulltards make a strong stand.
The DXY is at 76.43 right now – about one point above the RL I have been pointing towards for the last few days (76.35). I’m counting nine waves there which is motive – thus we should expect a bit of a retracement here and that soon. Right now the Dollar drives everything and should it fall and make new yearly lows then we’re probably talking Soylent Blue – if not the party might just have begun.
If I was a trader or played one on television I would most likely enjoy a little bounce in equities when it finally happens, as a Minuette (4) leg up is expected to be on the menu. Great opportunity to load up on short term puts or short positions. Remember – we should then get a fifth wave down followed by a larger retracement up – so, if you’re waiting to load up on long term puts you might want to hold your horses and remain patient. Let the trade come to you – never ever chase a market.
If this thing keeps dropping without a bounce I might just have to intercede – which means buying puts – works every time 😉
3:28pm EDT: Here are a few short squeeze candidates courtesy of the Berk-Meister who’s curiously absent today:
ATPG – 20% float short, 2.6 days to cover
GMCR – 26% float short, 8.7 DTC
LAMR – 14% FS, 11.9 DTC (I am a little iffy on this on. Maybe has broken down too far)
LULU – 13% FS, 19.7 DTC (We need to jump on board quick at this has already hit new highs)
PAG – 30% FS, 4.8 DTC (Options are a little shitty)
CSTR – 27%, 9.6
DBRN – 23%, 11.7
MYL – 24%, 8.9 (I’d short this shit 23% short float on a pharma before earnings)
AMSC – 28%, 11.7 (I’d be tempted to short this too per h/s top)
NFLX – 29%, 12.2
BTW, these are HIS comments – I would never use such colorful language – hehehee 😉