Watching Paint Dry
I need to get my head examined. Here I am bored out of my mind as the tape is pushing sideways and steadfastly refuses to turn those retail part time Cassandras (look it up if you failed Greek mythology) into paper millionaires. Instead I should be sacrificing a free range chicken to the Bernank for somehow allowing us to extend and pretend our way into Christmas and beyond. Yes, this turd will blow up in our faces some day but not today. Which means I won’t be gnawing on my neighbor’s bleached human bones for dinner tonight – life is good and you won’t hear me complain.
Call me a selfish prick but I have given the current train wreck ample consideration. And make no mistake – we are all guilty. If you hear yourself bitching about Congress then ask yourself why we keep voting for the same psychopathic suit-monkeys in every mid term election. If you didn’t vote then you don’t deserve to have an opinion – period. In the meantime the usual suspects are still tossing the hot potato across the room and judging by history they’ll probably settle on some last minute extension which solves nothing but makes everyone miserable for a bit longer. Not that there any good solutions to our current predicament – it’s either the thunder-dome or a few more years of shuffling around the papers. Take your pick.
I hope you paid attention yesterday and didn’t bet the farm on the end of the world as we know it. Technically speaking we are running into weekly resistance right now which sits at ES 1707.5 – nothing of interest we can use on the daily right now. But then there’s this:
Our volume profile chart ran out of juice around the 1705 mark and I think the way up is going to be difficult. Now, you may assume that a congressional last minute deal would propel the spoos up up and beyond. Well, maybe but while I have cautioned the bears I would be prescribe the very same medicine to the bulls here. Remember, what everyone ‘knows’ is not worth knowing.
I have little doubt we see some wild gyrations if/when Congress finally stops screwing around but there are no guarantees that the market will respond wildly to the upside. Once again, stick with the charts. That said – for anyone still long since 1640 (snicker) there’s nothing to be done right now. Just sit and wait and let this kabuki play itself out.
Crude – we’ve got an RTV-L and an IP-L starting tonight after today’s session closes. We also have an IP-S, which is actually my preferred setup – however I would take either side. FYI – on the long side we have a NLBL standing in the way which is going to make things a bit difficult. But not impossible – as a matter of fact I may go in with 1/2R here and then add positions on a breach of the NLBL. Many ways to skin this cat.
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