Wednesday Road Map

I’m going to do a quick and dirty one tonight – let’s get right to it:

Talking about quick and dirty – let me introduce you to Mr. Porky, the new head of our Evil Lair Complaint Department. Make sure you phrase your inquiries politely – let’s just say he has a unique ‘touch’ in how he approaches his work.

Some people claim that this is a horrible and unpredictable market to trade in. Actually, I disagree – I think I have been pretty spot on in the past few weeks – the exception maybe being that I underestimated the length and continuity of the first leg up in early July. Otherwise everything has been going exactly to the main script.

How do I do it? Very simple – I’ll tell you my ‘secret’: Just imagine the worst possible scenario for all market participants and that’s pretty much what you’ll get every single time – LOL 🙂

Alright, I think you all know the script by now. We did push higher as I already suggested yesterday. The pattern on the Zero was clear – long time subs most likely recognized the ‘floor painting pattern’ and got out of short term puts. I for one was able to dump the August puts I got suckered into last week for tiny loss. Glad I did not falter at the top.

Now we are at a fork in the road and just like Yogi Bera suggests – we need to take it.

Clockwork Orange: Basically we have come as far as we should – if we don’t drop fast and hard immediately (which is by the close tomorrow) then it’s case closed for that one.

Soylent Blue: anything above 1090 is blue territory. 1100 is the confirmation and will put a final stamp on the ‘summer of pain’ [trademark pending]. Deal with it – I have prepared you for over month for this. No surprises over here at Evil Speculator.

This is the one glimmer of hope for the bears. The AUD/JPY is pushing into overbought territory. However, before you pawn your grandma’s wedding ring (without asking her) to stuff more cash into delta negative positions consider how long this bastard remained embedded last time around. So, don’t get your hopes up – I have an inkling this thing may make a run for it.

Bottom Line:

We are stainless steel rats. We eat gyrations like this for breakfast. We are long term positioned and laugh at such daily machinations clearly engineered to shake us out of the game. While others wince we play the swings and laugh over drinks.

Boy – that was almost poetic.

If you are prepared for Soylent Blue then it can’t hurt you. That simple. Get with the program and stop the ‘hope trades’ – you’ll sleep better and you’ll have more money left for boner pills.

Peace!

Mole