Too Close For Comfort
UPDATE 9:37am EDT: Morning rats – we are getting very close to my line in the sand after which I will have to cut my short positions:
Almost there – remember wave 2 should not cross the high of wave 1. If it does then we’ll most likely see more upside.
UPDATE 9:48am EDT: You’ve got to be kidding me – it turns 2 ticks away? Well, that happens – sometimes two ticks mean all the difference in the world. If you follow P&F charts then you probably know a thing or two about that. BTW, that doesn’t mean we’re out of the woods yet – it might come back for the final breach later today. Meh – I’m playing it small – have my conditional order set – really don’t care too much as I got a great fill last night right at the top.
UPDATE 10:03am EDT: For the record rats – just to respond to some comments:
- I did not call for a top at 826.78 – all I was saying was that this line should not be breached.
- I also am not ueber-bearish – I have made it clear that my current trade is pointing against the overall trend, which is up.
- So, if this one goes against me – I’m taking a very small loss as I got in at the very top last night.
- Which also means that I have no compunction about playing the long side once/if we breach 826.78.
I hope that clarifies the situation. Some people here seem to think that I am married to the short side as if trading puts is some nasty crack addiction. Nothing could be further from the truth. I’m a whore when it comes to playing the markets – give me a direction and I happily suck the long end of that trend.
UPDATE 11:41pm EDT: Well, it seems we are nearing resolution fairly soon:
Either this is a nice little bearish wedge or we push through that concrete wall at 827 once and for all. Frankly, despite the fact that I’m holding puts from last night the tape ‘look’s very bullish to me, further confirming the underlying higher degree trend. But there’s no reason for me to scale out right here – maybe at 815 would have been justifyable but I snoozed that opportunity and again, I’m not a daytrader. Let’s just see what’ll happen – my order is in, the line in the sand is ther – everything else is just mental masturbation.
UPDATE 12:04pm EDT: Breakfast time for Mole – very good chance my conditional stop is going to be hit by the time I return – I see higher highs and higher lows – doesn’t look good for the short term bearish case.