A Bag Of Hammers

The Fed just tapered by another $10 Billion, just as expected, and equity markets did the exact opposite anyone in their right mind [admittedly a relative term] would expect – jump higher. Which once again confirms the old adage ‘what everyone knows is not worth knowing’. Try to remember that next time when you try to pull together a collection of news bits and rumors in order to conjure up a prediction.

On the surface our YM campaign is doing just fine – nothing to be writing home about (yet) but we didn’t get stopped out either. So far so good – let’s see what’s happening on the S&P futures:

As Scott and I suggested we did get our bounce and especially the spoos have been able to recover quite a bit of ground. I do see series of hammers and the tape needed to gain velocity in order to escape the gravity well that was still looming below. The only line in the sand was the NLBL at ES 1944.25 – which is where Soylent Green and Soylent Orange part ways. But as I’m typing this we’re already above that NLBL and if we close above it then odds have it we are going to print new highs in a short order.

That’s pretty much all we need to know for now – let’s keep our YM/ES campaign in the running. Given the current momentum there is no reason to close it out. If we wind up closing the day below the 1944.25 NLBL then I will reconsider the situation – at this point it’s important to see if the momentum can sustain itself into tomorrow.

Cheers,