Short Squeeze Thursday Rub Down

I hate it when I’m right – actually, scratch that – I love it when I’m right. Especially when everyone else thinks I’m an idiot and that I’m paranoid, that I am going to miss the big one because I capitulated, I lost my mojo, my dick is too small, [fill in allegation/insult of your choice].

It’s not that I didn’t tell you so – of course admittedly it could have come a day or two later, but today was good enough for me. Let’s get to Mr. Zero:

I saw a lot of divergences today and was not shy about pointing them out to my subs. But I also cautioned them that a resolution might not come before tomorrow and I guess thus far I was right. Of course this might mean nothing and we may just bust higher on more fumes – let’s see if the bears make their move tomorrow – nothing is guaranteed and this will be an acid test for Soylent Orange. Otherwise, it was a very solid up day on the Zero – nicely played.

I rarely post other bloggers’ charts here but this one is so spot on that it deserves a prime spot here:

Thanks T.K. – I couldn’t agree more 🙂 Hey, George Carlin would have a field day with that expression… I am a connoisseure of Tim’s charts and I think he might be remembered by this one (or it’ll haunt him – hehehe). Of course that assumes we turn here. Diagonal support lines have a weakness in that the market needs to keep running from them in order to sustain a trend. But once they turn into resistance they run away from the bears and we might be ‘testing/kissing’ this thing for a few more days, even if we drop eventually. Of course EWT comes to the rescue and as long as we stay below 1074.31 [i.e. Minuette (i)] we should be okay.

Program Trading Update:

evil.rat/ES: +8.5
geronimo/ES: +5.25 (3 trades – all winners and subs probably got a better fill on the last one)

Looks like geronimo got his mojo back 🙂

FYI – if you were getting my twitter you know that I backed up the truck here. And yes, in case you wonder – if it’s Soylent Blue I will hold and add on the way up.

3:40pm EDT: BloodWine pointed out that the argument could be made that (iv) breached into (i) on the Dow – that was a bit of a cold shower for me as I frankly was so busy trading that I hadn’t checked the Dow’s short term wave count. In short and without weasel talk – yes, that argument could be very well made and the only saving grace for the bears would be this count:

Now, I am the first one to admit that this count is 90% wishful thinking. The reason why I bother offering it at all is that the Dow has been pretty tough to count as of late and that it does not conflict with any EWT rules. The a-b-c is also known as a running flat in our bible (psalm 48:1-38) and the orthodox top is covered there as well (psalm 55). Also, that count maintains a clean motive to the downside, which slightly supports its case. However, this scenario breaks the second we breach 9992.81. So there’s a chance but I rather would not have have seen this, so thanks for ruining my day, BloodWine! 😉

Cheers,

Mole