Toppy Tuesday Wrap Up

No, I’m not saying that today was the very top – but we’re getting close and what I’m seeing is a ‘topping pattern’.

Please note what I coined to be the ‘mother of all divergences’ on the PZI (left side). After today’s early morning irrational exuberance everyone who’s anyone seemed to have unwound their long positions. The air is getting mighty thin up here and I’m glad having exposed myself to the red side by now.

Aaah – the force is strong in this one….

Program Trading Update:

evil.rat/ES: +0.25
resident.evil/ES: +1.25
resident.evil/NQ: +1.5
geronimo/ES: -4 (three trades: one good one, one stopped out but we exited subs early, one that ran out of time).

That’s all I got for today – the wave count scenarios have not changed:

Seems to me that the diagonal support line would have to be breached in order to catalyze either green or orange before the week is over. Remember that we’ve got another POMO tomorrow – should give the bulltards more ammunition for blue. Just keep stacking those winter puts…

Quote Of The Day:

“The true test of the Fed is the market.“– Treasury Secretary Timothy Geithner

Translation:

The desired end justifies the means.

Urban Dictionary Translation:

It’s hard out there for a pimp…

1:10am EDT: Seems some noobs are doubting my March option magic. Let’s just use thinkback to review the 2008 precedent I keep referring to as a prior example:

Click this image to enlarge. BTW – this is no option simulation – this is based on historic data. Why don’t you guys chew on this for a while – I’m going to bed now.

See you rats tomorrow.

Cheers,

Mole