The Mother Of All Setups
Confusion quickly gave way to a realization of opportunity. Although the market is by no means clear and despite the fact that everyone is confused right now we are now approaching a technical setup you can not miss. It’s one of those rare moments where the risk is tiny and the rewards are huge. I am happy to present to you the mother of all setups 🙂
Alright – here it is in all its glory. So, what is the hoopla all about you ask? I’m paying you for this, you say? Well, it’s quite elementary Holmes. We of course took the elevator up as suggested a few days ago (I left the line in place – even the angle was spot on). Now we are nearing the 1179 mark at which I would suggest you go heavily short with long term index puts or any other short vehicle of your choosing. Your risk exposure? A whopping 2.75 handles – on the SPX at least. Or if you can stand a bit more pain (snicker) then wait until 1187.
So what’s the big deal here? Quite simply – the first stop is where we would violate Soylent Orange. The second stop marks the 78.6 line after which Soylent Blue is still technically valid but frankly becomes very questionable. There you have it – just because the market is being a bitch it doesn’t mean we can’t have a little fun here and there. If it works out you will be thanking me for years and I wouldn’t expect having to pay for a drink ever again. If not, well – your risk in playing this setup is extremely limited.
Before I run off – a final pointer. How can I put this in easy language so that everyone gets it….
GET THE FUCK OUT OF GOLD – NOW! Even better – short it!
Why? Alright let me show you:
You might want to size this one up by clicking on the image unless you got eagle eyes. This is the results of my ‘extremely overbought scan’ over on finviz.com. I did not look for gold, mind you – but out of 13 matches (my query is very picky) 8 were gold related. Also, according to trade-futures.com the Daily Sentiment Index’s percentage of bullish gold traders hit 97% today. Time to get out, folks – or time to get short.
Stay frosty! 😉