Running With The Bulls

At the danger of pointing out the obvious but this is probably one of the most systematic and orderly advances I remember seeing. Clearly there hasn’t been a lack of bear traps over the past eight years but there’s something eery about an advance that, after having faced the abyss by mere handles, quietly gets on its way thereafter and never even as much as stops for a bathroom break.

I personally love it but judging by participation in the comment section a good number of retail rats got caught on the wrong side of the tape. Perhaps there’s too little drama and end of world predictions when the tape runs up, or perhaps trading with the tape is too boring due to the lack of ZeroEdge sponsored fireworks? Alright, I’ll ease up on the snarkiness now 

Volatility during the entire advance has been interesting and completely supportive of the bullish case. As long as it keeps dropping like this I expect equities to continue doing the inverse. Even the trend signal looks almost perfect and actually reminds me of what we saw late last year when the bears took it up the rectum for the first time. Based on that we may see a extreme reading of -3 or lower after painting a bit of sideways tape, followed by a quick floor drop that rips the face off of any remaining late comers. I for one (and a few intrepid subs) rode this puppy higher for almost a month but was finally stopped out last week on that swing lower below 2020. No complaints – we had a good run.

Before I go – keep your eyes on the Euro this week. I would love to see a push into 1.5, just to see Draghi’s face when he’s scheduled to make his next announcement on April 21st. Which will be the last one before June, so this ought to be interesting. In the interim I would caution against betting against the EUR, which means a weak Dollar, which of course is supportive for equities. Not that we’re trading the news but it’s always good to remind yourself what you’re up against.

I’m going to skip the setups today and suggest instead that you get up to speed on our first option related tutorial I posted last Friday. Either a significant number of you are professional option traders or there is only marginal interest. If you have pertinent questions or suggestions I propose that you take advantage of the comment section as Jay The Executioner will stand by to answer any questions you may have.