I wrote to my Slope+ subscribers yesterday that the surge in prices was definitely NOT a “buying opportunity”, and that I would view 1570 as the target top & line in the sand for the day. Well, it went to 1570.75, so I hope you’ll allow me a tiny bit of slippage
The trendline on the minute bar chart is breathtaking (shown in red below); it followed the price points magnificently; the real question here is whether we’ll take out Wednesday’s low, or Yellen will use the force of her Old Crone Magick to reverse things. I remain cheerfully short.
Oh, and incidentally, the latest LDI reading shows the following: “yesterday [Monday] close was a once a year time to buy a real dip. I bought two more SPY 160 Calls.” – so ignore that at your peril.
