Low Probability High Payoff Lottery Ticket

This is a quick update on our equities saga – finally the time has come to wield the iron as it’s hot. You recall that I suggested a bull/bear inflection point at the ES 2055 NLBL. We’re there now which bestows upon us the opportunity to grab what I call a low probability high payoff lottery ticket (LPHPLT – I loves me those acronyms):

The time is now – so go grab a handful but be advised that the odds of success are probably around 15% – 20% – if that. However if it for some reason drops from here then the payoff may be significant. Most likely however this thing is going to push higher over the coming days – the bulls seem to be running this tape.

Trigger and stop on the chart, so have at it but only play 1/2R or less – again, this is a bearish Hail Mary and most likely it’s going to fail. It’s literally a place and forget type of setup.With the VIX back at 17 a long put play may an option as well – but I would grab OTM strikes in this particular case but that’s me.

A little more context below for my intrepid subs:

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Bottom Line: We’re grabbing lottery tickets here but it seems like the bears have had it and the bulls are running the show now. If stopped out I’m planning to be long with a stop a respectable distance below 2055. I may get whipsawed yet again but that’s the price of admission to be trading here.

Cheers,