Well, as I've been saying, tomorrow (Wednesday) is going to be huge. An hour before the opening bell, we get the early GDP report (subject to revision – twice – in the near future). With so many people saying we're not in a recession, it'll be interesting to see what the data indicates. Then, at 2:15 EST, the Fed does their announcement. Every character, comma, and space is going to be interpreted to death.
From a charting perspective, it's impossible to say what will happen except that it'll be big. I have only one index position – – a fairly large-sized put – – but I'm definitely keeping a lot of cash on the sidelines just in case of some (God forbid) bullish blowout.
I got rid of my NDX puts today, because I really don't like the action here. I know that $MSH looks good, but $NDX is what I had puts on, and this chart worries me.
Added to which, the $COMPQ is exhibiting a pattern that has had very bad (for bears) results in the past few years.
On a brighter note – – and I actually had a pretty good day – – my dozens of shorts in oil are doing great. OIH has only lost about 6% of its value since its peak, but I really like how this is shaping up.
Likewise, my double-inverse ETF on oil, DUG, had a good day too. I bought these on the day where the low was made.
My puts on MDR also did well, with the stock falling nearly 9% today. This is another nice example of an attempt at a bullish breakout that failed, similar to ISRG.
And………finally!…….my puts on BHI are shaping up. I like the way the price is moving away from that trendline.
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One other favorite of mine is GENZ, which ever-so-slowly is building what could be a terrific head and shoulders pattern. If complete, this could take GENZ down to the low 50s.
That's it from me. I'll be watching IWM like a hawk at 5:30 a.m. my time. I offer something that I usually cannot – – and guarantee – – and it is this: April 30th is going to be really, really interesting.
