Welcome To Hell Week!
UPDATE 10:45am EDT: So, here I was enjoying my cubes profits when suddenly Ben’s minions showed up:
Make no mistake – this is pure institutional/program trading. I’m looking at various indicators and this is a blatant bang job. We are talking 37 handles on the NQ here and my short term stoch and my MACD were both at 100% 15 points ago.
Welcome to Hell Week! 🙂
UPDATE 11:05am EDT: What’s really worth noting here is how much the ES just lagged the NQ during this morning’s short squeeze. Not saying that they can’t bang this thing higher today or tomorrow – good chance actually – but as I keep saying there are obvious cracks forming in the dam. But this morning is a good example of why I keep recommending to play it small/safe. I mean – just look at the past ten days in the chart above – that’s some crazy shit. Daytrader’s heaven…
UPDATE 11:10am EDT: I just took a second look at that Cubes chart and I think I’m seeing a developing channel here:
Let’s keep an eye on this thing. If we bust outside the upper boundary all hell probably breaks loose.
UPDATE 12:44pm EDT: Someone mentioned the ISEE just now:
Those readings in equities are insanely bullish – good news for the bears IMNSHO.
UPDATE 1:22pm EDT: I recommend exiting short positions if we breach the upper boundary of the Cubes channel above with confidence – just FYI. The tape looks like as if we might get a run up at the EOD – as BalaB suggested. Meaning a long spike up – completely overshooting short term stochastics/MACD – followed by only token consolidations which burn the same momentum indicators while going sideways. Not looking good for the bears today and it seems we’re getting either the bear squeeze (orange) or WTF (green) scenarios.
For the record folks – we must not fight the tape. I got in on Friday due to various signals which were proven correct early this morning. However, the bulls are not going to give up easily and I did expect a fight – however not so early and so violent. It’s tough to yet again having to hand the trophy to the bulls but they are the majority right now. No need to be stubborn. I see it this way – if we get a 10th up week our eventual profits will more than make up for the damage taken. Don’t try to force it right here, rats – our time will come. Right now the tape does look pretty wild and I know the psychology that might compel you guys to ‘take a stand’. Don’t do that – I think the channel above is pretty valid and probably the best indicator we’ll get on a day like this.
UPDATE 1:50pm EDT: Boy, not a minute too soon – LOL 🙂 I assume most of you rats are out now?