Testosterone Thursday Rub Down

And here we are again – back from whence we came – adding yet another frustrating Charley Brown moment to the long list of missed kicks in the past five months.

Fortunately I saw it coming right at the open and hedged myself accordingly plus I snagged quite a few points on the ES during the early morning rip tide. The rest is Zero history  – except for one brief moment we did not dip into negative territory all day. Horrible economic reports notwithstanding we are most likely on our way to making new highs – either tomorrow or most likely on Monday.

Program Trading Report

geronimo/ES: +1.25 (two trades – the last one didn’t have enough time)

The Orange scenario is still a theoretical possibility and we could technically see the tape turn at the 78.6% fib line resulting in a C wave into 965. However, the question is – with OPX Friday tomorrow and (as Fujisan predicted) a lot of o.i. in the 1000 region – how realistic is it?

At this point it seems that we’ve got a target painted at 1040 and potentially 1100 to round things up a bit. As I said all week – I will unhedge and then start adding March strikes on every leg up – which absent a crystal ball is the only way get exposed near enough the top of Primary wave {2}.

The powers that be are fully aware of which direction the Dollar is going to be pushing but for now they are keeping a lid at it for obvious reasons. Also, don’t think that equities cannot rally while the Dollar is pushing to the upside – it’s happened before (last March) and it’ll probably happen again. These types of correlations are often temporary and can break at any time – so be cautious relying on them for your trading.

Cheers,

Mole