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Mexed Missages
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Mexed Missages

by The MoleJuly 30, 2010

Something potentially very ugly happened this morning – I am not sure if it’s coincidence or if this was yet another setup to punish the poor battered bears. Either this is very good – or very bad. The good news is that we’ll know very soon:

Alright – pick your poison:

Among all the whipsaw hoopla this morning some may have missed the fact that the SPX busted what I had previously counted as a first wave of a developing motive.

Now, thus far we are okay – assuming this is Soylent Blue. If it is not Blue and we breach 1120.95 then it may get very ugly for the bears – very ugly. Because the best way to count the recent drop would be as a second wave inside a third wave – to the upside. And although a third wave does not have to be the longest – it however can’t be the shortest. Which means that if we breach 1120.95 on the SPX the upside potential for Soylent Green has just been extended. Ouch!

What To Do – What To Do!

No reason to panic however – actually this might make for a great trade setup. Stay short until 1120.95 – if we breach it a bull call spread or even a bull call ladder with the second short leg above this year’s highs may be good medicine. If you have no clue what I’m talking about – then you might catch up on our ongoing series on EWP Option Strategies.

Cheers,

Mole


About The Author
The Mole
Mole created Evil Speculator amidst the chaos of the financial crisis in early August of 2008. His vision for Evil Speculator is a refuge of reason, hands-on trading knowledge, and inspiration for traders of all ages and stripes. You can follow him and his nefarious schemes at the usual social media waterholes.
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