Well, China (which at least has the decency to be openly Communist, as opposed to our nation, which pretends otherwise) threw $585 billion at its economy, and the AMEX China Index exploded with an amazing 2.36% gain. Whoo hoo! I can tell you one thing. I am through with FXP. It sucks. I am sticking with FXI for either bullish or bearish positions (I own puts as of earlier today). Anyway, does this chart look bullish to you? No, I didn't think so.
My well-worn hands will be wrung less about the IHS (no, that's not a religious reference; I'm speaking of the inverted head & shoulders) because of the utterly lame-o job the bulls did with it today. The tinted area below represents a formidable amount of crud (there's that word again), and although obviously someday it will be breached, it is currently the bear's best friend. And, as I've said, even a rise above it would represent nothing more than another shorting opportunity.
The potential for ES and NQ to break out is still there, but the IHS has become really, really sloppy and ugly (by the time you reach this, it might even be moot).
One of the areas that was sorta-kinda shaping up to be maybe a bit bullish was the SOX. That's going out the window too.
One of my earliest posts today was to buy DUG. That was, I think, my best percentage gainer for the day. The declining volume and very clean stop-loss level made this a compelling trade.
Over the weekend, someone was curious why I liked SDP so much. I think the $UTIL is just a super trade with a lot of life left in it. I think it has only realized about 35-40% of its potential drop so far.
The ETFs have gone from a harami pattern (Thurs/Fri) to a bearish engulfing. Nice. Let's see what tomorrow holds. If we get a hearty up day, it'll just be more confusion all around, which I think we're all tired of seeing.
I held on to my largish position in EEM. If the market does rally, I don't want to get stuck holding nothing but puts and shorts. My stop on this is pretty obvious, and a breakout would be powerful. This held up quite well today, considering.
That's it for me today. Hang in there, everyone!
