Whipsaw Wednesday Rub Down

I keep finding myself starting my wrap up posts with negative sentiments – it’s been some tough tape in the past few weeks. I think all this crap is really starting to wear on people and I’m sure it’s not just the bears.

Zero actually had a great day – would you believe it? Clean signals all day. What I’m posting here looks a bit different than what subscribers looked at – I left Monday on the Lite chart to show how little participation we’ve had again in the past two days.

This is what subscribers looked at during trading. Notice that every touch of the zero mark was met with a new round of buying. Bears remain in full hibernation and the ensuing gyrations were a market maker’s wet dream.

What I forgot to point out on this chart is the nice divergence I pointed out to subscribers around 2:00pm EDT (11:00am on the chart) – which then led to the final drop of the day.

As I’m typing this I see the usual post 4:00pm ramp job – some long ass candles on the NQ (the preferred instrument lately it seems). The puts I grabbed (a few minutes too early) are taking it up the ass already, glad I played it small.

The only good news of the day IMNSHO – and the reason why I was nuts enough to short this rally. We’ll see if we get an inside close tomorrow – if not then it’s the first time in 2 years (according to a quick visual scan) that a drop below the 2.0 BB would not result in a push higher the next day. Probably just my luck and we drop lower – LOL 🙂

We are rapidly approaching 30 btw – if anyone paid attention. A few weeks ago I was actually ridiculed by someone because I suggested that we’d drop below 30 sometimes this year. Doesn’t look like such a silly idea anymore, does it? 😉

I’m off to the dentist as my jaw line is not looking so good.

Cheers,

Mole