Come To Daddy
Come To Daddy
Equity futures have been sliding lower all night and at this point it looks like we’re going to revisit the ES 2020 cluster unless we’re seeing some instant buying near the open. As I pointed out yesterday – I’m pretty excited about the fact that we are finally seeing a meaningful correction.
The one problem with a relentless advance devoid of minor corrections is that you won’t find any technical context once the tape gets to the point of correcting to the downside. As the saying goes – nothing in life is free. So I’m pretty cautious about suggesting support levels here – the next possible candidate is the ES 2020 mark, and if that doesn’t hold we’re talking about a more serious wipe out. But let’s not get ahead of ourselves.
In the end it’s always about controlling and and leveraging fear – the former relates to your own fear and the latter to that of others. Obviously the continuation of yesterday’s surprise drop lower is a great opportunity to thoroughly trim the fat and produce new buying opportunities. Until however we see clear signs of buying interest (or major support levels are being touched) we should stay on the sidelines and simply observe. Leave the bottom calling to the same people who called one top after the other on the way up. Most importantly – don’t attempt to step underneath a falling sword.
On the short term side soybean futures are looking like a possible play as the 25-hour SMA seems to be offering support. My nefarious plan is to be long here with a stop right underneath the SMA (and two NLSLs).
Crude also looking promising here – I know, it’s scary to be thinking about buying down here. But that was a nice push higher and I’m going to throw in 1/2 R here with a stop underneath 63. Let’s see if she bites.
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Cheers,
