Going Exponential

1:30pm EDT: If I was a bear (which I am) I would be extremely nervous about the fact that the futures have been consolidating upwards/sideways since this morning’s rocket launch. That’s right – I’ve been watching the tape crawl higher while my short term stochastics/MACD have been dropping:

At this point we are not even painting a channel anymore – we’re simply going straight up like an elevator. 10th floor please!

Karl Denninger mused this morning:

This sort of parabolic blow off ALWAYS ends early, but you can literally go broke trying to figure out WHERE its going to turn. Don’t.

Yes, when it breaks it’ll be fast and hard – nothing – even a Fed sponsored market – can go up in a straight line forever. However, when that’ll happen is anyone’s guess at this point – I presented my evidence this morning. And accordingly the Dow is basically hugging that PPTPL right now and if it manages to push inside yee ole’ 2008 channel we bears will take it up the ass in a serious way.

1:45pm EDT: My intersection point has been reached – amazing – it’s not even EOD yet:

We are now outside the realms of what I have experienced – even during the bull market. It seems a MASSIVE amount of liquidity has been released into equities in the past 10 trading days. And this will probably be my very final line in the sand for holding my short positions. There is nothing but air above and obviously we are way beyond statistical probabilities at this point – meaning a 11th or 12th day up is not impossible as gravity seems to be non existent.

Now, I’m cool as ice over here – actually just added a few more puts. But I’m not going to make this a suicide mission – this was one final technical line I was waiting for. If this one breaks and we push much higher – how far I of course won’t announce here (I know better by now) – and I’ll have to go into cash.

Geronimo Saves The Day

Geronimo has been a heaven sent today – this is the second time it allowed me to hedge my short positions. Not sure how much you guys have been losing but have you traded geronimo, it would have been a lot less. Sorry for keeping to rub this in but I just don’t get it how this thing is 90% accurate and very few are subscribing.

And this is not about cashing in on subscriber fees – I had several geronimo subs email me this morning, thanking me that it had kept them out of big trouble in the past few days. It takes entries that I would never ever try as a discretionary trader, which is confirmation to me that it is achieving its goal of anticipating program trading attacks.

Geronimo subs – please feel free to offer your own experience in the comment section. Anyone who is afraid of trading this tape due to program trading monkey business should seriously consider giving it a run.

3:02pm EDT: Geronimo just hit its third successful scalp in a row for today 🙂