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Perfect Storm
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Perfect Storm

Perfect Storm

by The MoleJuly 23, 2009

10:18am EDT: I actually had a pretty fun morning thus far – let me show you:

Of course since I drew this chart we’ve busted into 965 – wow – but a major hit to my puts has been averted. If we don’t turn here we might see 975 on the SPX in a short order. Wow, this looks as if we’re getting a 10th up day on the NDX – in the words of George Patton:

NUTS!

10:23pm EDT: Ding Ding Ding Diinnnnnngggg!!! The Dow Jones just touched 9000 for the first time since January 6th. I hate to be right on this one but here we are – 30 more points and we are touching the PPTPL.

BTW, I just added a few more ATM SPY puts.

10:30pm EDT: It seems that my expectation of last night was fulfilled:

Now, as you can see we are starting to run into some resistance here. I forgot to mark the top of Intermediate (4) of Primary {1}, which is also around 9050. Then there’s the old PPTPL which should now act as resistance until it is overcome. Then there is a diagonal which is marked on the chart. And finally, this is the 10th up day on the NDX/COMPQ and I need to ask 2sweeties what the record is on that.

Can we bust a bit higher here? Most likely – greed is a powerful motivator. But the sky is not the limit and I’m pretty sure that the last bears were taken out by this power spike. Who besides Mole is left? 😉

10:46am EDT: Okay, the picture is getting clearer:

I have taken multiples of Minute {1} of A and slapped on a blue comparison fib and then I have taken multiples of Minute {3} of A in orange and projected both fibs from the start of what I think is {5} of A. Based on what I’m seeing we should find ourselves around SPX 975 to 980ish. Which should also roughly line up with the resistance zone I highlighted in the Dow further above.

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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