Equality

UPDATE 9:51pm EST: We reached the point of A-C equality – I cut some of my hedges.

If we breach this level we probably bust higher to breach the Jan 28 highs and green is off the table. Important levels here.

UPDATE 10:48am EST: The longer we hang around up here burning downward momentum (i.e. stochastic/MACD) the bigger the chance that we might bust higher. If we keep dropping in those momentum indictors without any weakening in price consider hedging or dumping your puts and reloading higher up. We’ve been up here now for an hour – thus far I don’t see any weakness which alerts me.

UPDATE 11:11am EST: LOL – I guess I was right in being paranoid – higher we go. 864 is the 78.6% fib line and worthwhile watching. FYI – the C line of a flat is usually between 100% – 165%, so the max would be somewhere 875 – just below the Jan 28 high.

UPDATE 12:16pm EST: It seems the bears are back in hibernation today (and yesterday). We are burning momentum again without dropping in price – major buyers are pushing this market higher. Mentally here’s where I am: I sincerely hope we get a monster rally into the close and touch 875 – at this point I would bulk up on Feb (yes – you read that right) and March puts.

For the record – I’m not fighting the tape. Today the trend is UP – and as of this writing there are no signs of weakness in equities. At the same time we are reaching extremely overbought levels and I have to take advantage of that.

In other news – check out Gold, which again is not participating – worth noting 😉