Make Or Break Point
Make Or Break Point
It’s the height of summer, it’s hot as hell, and like most of the crew here I was planing to phone it in today. Unfortunately I couldn’t help but check my chart and thus notice this delicious little formation on the short term panel just now. And here I am writing another post down at the lair instead of kicking sand at wimpy pink German tourists at the beach right now. I kid you not, I saw Merkel yesterday touring the city with a ‘Spanish Refugees Welcome’ sign.
That hourly formation tells me that the bearish case (see VIX Sell signal yesterday) is hanging by a thread. A handle or two higher and we’re starting to shift momentum rapidly and given the lack of participation right now it would be easy to bang the tape higher. Great time to be short and great time to be long – pick your poison.
Bottom Line:
I think right now as I’m typing this we’ve got a perfect short opportunity. If the ES breaches above 2183.75 then the odds start shifting in favor of the bulls. Above 2183.5 the bulls got this one – again. So here you go – your evil mission of the day. Great risk to benefit ratio at these heights and given the descending diagonal, plus the fact that the BBs are squeezing and the 100-hour SMA is right below.
