Waking up to an /ES down 26 points is a pretty pleasant way to start the day if you're short (it's 20 minutes before the regular opening bell as I am typing this). I confess that I am so shell shocked from prior explosive rises that I have taken my /ES profits on my 30 contracts even though the next retracement level is an additional eight points lower from here.
The truly curious item to me is gold. I used to think that if (a) EUR/USD was down hard; (b) OIH was down hard; (c) equities in general were down hard, that gold would be getting bludgeoned. This isn't the case at all, even though all three circumstances are true this morning. Gold is absolutely soaring, and I've got plenty of precious metals shorts (some of which are sure to get nuked the moment the market opens).
My charts definitely indicated an overextended market, and the "cause and effect" relationship I thought was in place would have, I thought, helped my cause. But gold is clearly in its own special bull market (and hats off to Gary Savage for beating the bible on this point) in which I am wrongly positioned.
