Heading For The Hills
UPDATE 10:39am EST: I’m looking at the tape of the past two days and am not liking what I see. There is a battle going on to recapture 8000 on the Dow but there is little momentum going either way right now. On top of that I do expect a correction to the upside so I took (small) profits on BIDU and GOOG right at the low – sometimes you get lucky.
I need to supress my urge to act and wait for the right moment to take action – this is not it. The plan is to make a move at 800 or at 850 – everything in between is just razorblade whipsaw and noise.
FYI – we are above VWAP on the three index futures food groups (YM/NQ/ES). Yen looks overbought on a short term basis (1min correlation chart) – I suggest you treat carefully if you’re delta negative.
Don’t worry rats – our time will come – but we can’t force it.
UPDATE 11:00am EST: Here’s some mental masturbation for you rats – as I know y’all like pretty pictures.
V for Vendetta!!! Well, let’s see if this turns into some symmetrical counter channel. Yeah, yeah… I know – how German of me, but I like order in my trading universe…
UPDATE 11:08am EST: FYI – we just touched 8000 on the Dow again.
UPDATE 1:00pm EST: Pretty uneventful day thus far, but the channel I proposed seems to be holding. I was sweating there around 825 but we bounced back up. That doesn’t mean it’ll play out this way – it’s just a probability based on prior observation – call it a guess at best. As I’m typing this we’re suddenly dropping down hard to retest the channel edge and the VWAP on the ES and the YM. This tape seems to be going nowhere – feels like it’s engineered by the MMs to generate some buying/selling – sorry if I sound like a broken record. However, worth mentioning that the breadth in the SPX is 1.3:1 advancing right now and about the same in the NDX. I’m only exposed on the GLD front and hedged otherwise and that’s working well for me right now – after a little early morning scare – LOL 🙂
BTW, yields are still crawling to the upside, much to the chagrin of Mr. Bernanke. What’s next, Ben? Surprise us… (never mind that).
UPDATE 1:15pm EST: Quote of the day:
The end of the rope for this generation has been reached and it is a long way down.
— Karl Denninger