Whipsaw Galore

10:11am EDT: I dragged myself out of bed this morning in the hopes of catching a nice rally to the upside (to short it of course) – but this far it seems I should have kept dreaming about that stripper convention.

Today is going to be a wacky day and that open was just the overture. I was about to go long with some futures around the bottom but the hourly/daily RLs didn’t match up and then I snoozed. This stuff happens on low participation day and we saw plenty of that last December. When you see the Zero go flatline it’s usually a good idea to just sit the day out. I’m mostly here to catch up on some reading and coding – if we somehow get a rally to the upside – well, you know what to do….

This look slike a good developing channel to me – again, Cubes on the right and the corresponding NDX prices on the left.

10:21am EDT: I’m telling you rats – we are heading straight for a bond market dislocation:

Tyler mentioned the other day that the spread between the 10 Yr UST and the 30 Year current coupon mortgage index has collapsed to the tightest level in 2009. I’m no bond expert but it seem the wheels are about pop off this wagon.

Okay, I’ve got at least an hour of reading to catch up on – will report back if I see anything substantial in the wave count. We could easily push towards 897 to complete {iv} of C – I hope we do.