Getting Close

UPDATE 2:10pm EDT: I’m getting pretty excited over here and it’s not because of all those evil.rat sign ups:

We are nearing the point where I would consider it my civic duty to short the shit out of this bulltart paradise. We are heading straight for 881 at which point I expect the bulls to slam into a wall of resistance (891 at the latest, touching my diagonal).

Also, consider Exhibit B:

This one is pretty large, so click on it and look at the chart in high res. The message of course is that unless the market takes a complete nose dive in the next two hours we’ll finish this week up, which will be the 6th in a row for only the 2nd time in the past 2 years. The last time was actually seven week in a row and that was at the tail end of Cycle wave b of this bear market, which some people call the end of the bull market (but not me). Anyway, and in a way I don’t even count that one as a seven but as a five since one of the candles was a doji and barely a few ticks into the plus.

What’s the chance we’ll end next week up? And even if we do – what is the risk level at this point expecting eight weeks up in a row? Let’s think long term – we are way overdue for a correction and it will come sooner than later.

Also look at the obvious line of closing weeks around the 890 mark – this is pretty significant and will not be ignored – that much I am sure of.

Finally, look at my trusted weekly stochastic – I actually haven’t looked at it for a while and was stunned about how overbought we are. This thing rarely fails – yes, we might bust higher a little but there’s not that much room for growth left, folks. The bulls are running out of vapor.

I think it’s time to slowly think about picking entries for some nice puts – I just hope they bang this thing even higher today – getting very excited to ride this thing down. If we are at the onset of (B) of {2} it will be fun and very reminiscent of last year’s wave 1 of {1} down – can’t wait.

BWT – in case you missed it – evil.rat has been released – detailed announcement can be accessed by clicking on the image:

UPDATE 2:24pm EDT: Here’s another reason to be excited today:

Gold continues to push lower and even breached this year’s low of 866.66 today – confirmation that Minor 4 has ended and that we are pushing towards the 825 mark. BTW, what is it with all those sixes – truly evil tape – just the way we like it. Anyway, the 825 region is probably where I’ll cash in my chips and wait out an needed consolidation, which I expect will retest the 900 mark.

UPDATE 2:55pm EDT: Okay, if you don’t understand the following chart I encourage you to read this excellent article by zero hedge:

This is the updated HSKAX chart – which tracks market neutral performance. It seems we’re ticking up a bit but not by much.

If you wonder where all that sudden profit taking is coming from look no further than this weekly report – program trading now accounts for 30% of NYSE volume and a huge chunk of that is coming right from Fed darling Goldman Sucks.

UPDATE 3:40pm EDT: I just picked up some DE and MET puts:

MET is heavily overbought – only 0.7 days to cover all shorts 🙂

Let’s bring this sucker down!

UPDATE 3:58pm EDT: Perfect timing – loaded up on a boat full of SPY puts at 873 🙂