Don’t Step In Front Of The Bull

I’m running a bit short on time this morning as I spent a good portion of it figuring out a tricky math problem I needed to solve for my one of my new short term momo indicators (i.e. a Laplace bubble). Big kudos to the Gold Gerb who didn’t hand me the solution on a platter but at least pointed me into the right direction (for which he was richly rewarded). Albeit a bit rusty in the calculus department I was able to take it from there and figure out how to process my input successfully. Of course in hindsight the solution is rather trivial, and actually confirmed one of my early ideas, but just in trading hindsight is 20/20. And in the end only results count.

I’m running a bit too late for posting setups but at the danger of stating the obvious I nevertheless wanted to issue a stern warning to any of you who may feel tempted to ‘sell the rip’ or ‘fade the crowd’ or try anything stupid just to be contrarian. Quite often the crowd is right and if in doubt follow the tape higher.

Equities have been on a tear for weeks and despite lacking in breadth and momentum (see my massive momo post yesterday) are not encountering anything substantial in terms of resistance. Neither the futures or the actual S&P cash index are giving us any technical context we could hang our hats onto at this moment. Shown above is the latter which only features a last bastion of technical resistance near 2104 in the form of a small cluster of monthly Net-Line Sell Levels (NLSLs). Whether or not that actually will stave off or even diminish any bullish momentum remains to be seen. But at minimum let’s wait and see once we get there. Never step in front of a train, bus, bull, bullet, or any other fast moving object in general.

I’ll tack on a few more charts here later today if I run into anything interesting.