I got a very late start this morning – – – I was up at 6:35 a.m., which is a couple of hours after I normally wake up. I dashed downstairs and was pleased to see things leaning my way. They've been leaning my way progressively all day, which is obviously encouraging. I have been adding to shorts most of this week, and I presently have 241 positions. I covered day trades on GLD, SLV, and GDX at handsome profits earlier today, and have returned to avoiding precious metals like the plague.
Early this week, the bulls had a golden opportunity to push things higher. Even with the OPEX advantage, they've already blown it. Allow me to point out 4 failures on their part.
Failure (1), they could not even manage the strength to get the /ES back to resistance at 1103. Failure (2), they managed to push the market higher for a second day in a row, only to fail at the exact same spot. Failure (3), prices cut through resistance at 1084, which destroys any basing pattern that might have been forming.
Finally, failure (4), on the EUR/USD below, they completely muffed the chance to complete the IHS pattern into a surge (which would have flowed directly into an equity rally).
The dreaded OPEX week is almost over, and the bulls have already tripped on their own ambitions. The bears have the baton. A drop below 1066.25 on the /ES will allow the bears to beat the bulls over the head with it.