As a follow-up to this amazing story from last week……..(I’ve marked with an arrow where the guy got out with already “devastating” losses):
If you have been following us in the past few weeks, you will know that we have been insisting saying that ES was a SHORT, in part because of the large number of consecutive higher WEEKLY closes (5 and then 6), which some people thought was an indication of strength with a high probability of continuation of the trend.
Obviously they don’t know what they are talking about.
Here below is a WEEKLY chart that shows what (almost) always happens when a market pushes to its limits (this is the ES market, after 6 weeks up in a row):
Now, before some smarty-pants is going to jump up and say the money was made on the LONG side of this leg, please remember we have offered the BUY signal long time ago, when the market was down below 1900, so if you were a subscriber you know where the time to BUY was and if you did buy, it would have been a great success. After a certain point it was time to SELL and there we were until a few days ago…
Remember Iconix? I prattled on about its head and shoulders pattern (tinted in yellow below) so much that I got embarrassed mentioning the symbol any more, but I did “re-mention” it in this post from earlier this year. Well, I’d never have guessed it could fall so far, but the 85% plunge is nothing short of breathtaking. I mean, just…………wow.