Now Reading
Soylent Blue

Soylent Blue

Soylent Blue

by The MoleMay 20, 2009

It’s been a wild ride today and the bulls tried to throw us off every step on the way.

However, despite the early morning head fake the drop into the close confirmed that we are in a topping pattern and that further downside should be expected. Not that they bulltarts will give up easily but whipsaws notwithstanding we eventually should breach this channel for good – probably after a last-scare-retest at which I would double up on my short positions. Like last time I am willing to take on quite a bit of pain as this is starting to look like one of the best setups of this quarter.

Count: It seems we are now at the beginning of Minor C of Intermediate (X) or (B) of Primary {2}. Equality between A and C should be reached around the 873 mark – so use that as a potential target for your short positions or spreads.

Here is the culprit for my irrational exuberance to the downside – Mr. VIX did indeed bestow us with the 2nd step towards a sell signal. Now, all we need is one close higher than 29.05 and we should be good to go.

Keep an eye on this evil channel pair – for your convenience I have added their cash index equivalent as a left chart. We need to breach both of them with confidence either tomorrow or Friday. Again, expect head fakes and other market maker ugliness before they drop this thing further – it’s almost guaranteed – stick with your guns unless we breach today’s highs on either cash index.

The buck is descending into our preliminary target area. As you already know I am expecting a bounce around 80 or even ahead of that mark. Until this happens we might have to put up with further gyrations in equities – so keep an eye on this. A bounce here might also break Gold’s neck – eventually – based on the latest tape there will probably be a delay before it breaks to the downside.

Also remember that Monday is Memorial Day holiday in the United States – so the markets will be closed in observance.



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.
Enjoyed this post? Consider a small donation to keep those evil deeds coming!

BTC: 1MwMJifeBU3YziDoLLu8S54Vg4cbnJxvpL
BCH: qqxflhnr0jcfj4nejw75klmpcsfsp68exukcr0a29e
ETH: 0x9D0824b9553346df7EFB6B76DBAd1E2763bE6Ef1
LTC: LUuoD6sDWgbqSgnpo5hceYPnTD9MAvxi6c