Lamb To The Slaughter

10:06am EDT: And I’m not talking about equities – although I did enjoy that little gap this morning. No, I’m looking at my Dollar chart and it’s not looking pretty:

I can literally hear Heli-Ben on the phone this morning:

Kill it – kill it now!

30-year treasuries are nearing interesting short trade opportunities which I have taken the liberty to highlight. ‘But Mole, why would you bet on treasuries dropping if you expect to do the same in the coming weeks/months?’. Good question – and strike that one up to the eternal mysteries of ephemeral market correlations.

Equities are in the process of retracing the ‘oops-unemployment-at-25-year-record-plunge’. I cashed out my October puts and might add a few more if we push higher today to fill the 1025 gap on the ES.

Take note that we did bust through that lower channel border of mine at the open but then promptly retraced. So, was this the beginning of the end or is it yet another fake out followed by a repeat performance of what happened early September? I wouldn’t put it past Ben to do something nasty lobby Congress to recharge his POMO cash cow. We shall see – but obviously at this point we should all expect a little snap back, even if the drop continues.

Finally, IMNSHO we need to keep pushing a little lower here either today or Monday morning as for the blue wave count to gain credibility it would be nice to see a long and solid third wave. Right now we barely exceeded wave one, so this is a bit meager.

10:50pm EDT: I reloaded my Oct puts around ES 1023 – a tad early as it was based on 2sweeties’ hourly RLs. But the tape continued a little further up for a complete gap fill. We’re dropping again right now, so let’s see if we can push back below VWAP or if this was the beginning of a turn around.