Good morning, everyone, and welcome to December.
You’d expect me to be beating my chest and howling at the gods above, but nope. Indeed, I used used a command on my brokerage software I’ve never used in my entire life – – I wasn’t even sure it existed – – “Cancel All Open Orders”. I’m going into the day with not a single stop, which is unprecedented for me. I want the initial dust to clear before I make any decisions.
For those who missed my last 300 posts, I’m very light right now. I am 100% guaranteed to lose money when the bell opens. I am 99% guaranteed to be down when the closing bell rings. But even though the bulls are celebrating the enormous green numbers on the screen (one-dimensional thinking), the chart of the ES (two-dimensional thinking) don’t exactly paint this as a New Era for our hoofed friends:
The chart of the NQ is even more interesting, since it shows that this massive capitulation from the U.S. (which is comically being spun as some kind of victory) is nothing more than a bounce toward the top of the “sine-wave” that’s been in place for months. Lower lows. Lower highs.
The funny thing is that as I’m typing this it’s-still-totally-dark-outside post for you, I got an urgent “interim bulletin” from Elliott Wave which, like everyone else except me, shows some SERIOUS backpedaling. These guys were jumping-up-and-down strident with their bearishness until recently, and now, hot off the press:
“….clearing the way for a new all-time high.” From the guys in Gainesville, no less!
We shall see.
Tim Knight, the only bear left on planet Earth.