Another terrific day! Even though we had ad bounce in the market, leading to a green ES and NQ, I turned out another nice profit, thanks to my well-chosen positions. I remain entirely short, and aggressively so, at 200%.
Let’s take a look at what the ES has done over the past few months:
Here is what I am observing:
- The green tint is where we got our first principal trend break, back in October of last year; in retrospect, this was a crucial change in tone;
- The cyan tint is where, in the midst of a daily push to lifetime highs, the short-term momentum waned and, unbeknownst to any of us, we were laying down the final chunk of a distribution top;
- The yellow tint is where we struggled vis a vis the intermediate-term trendline, and on Wednesday the market finally succumbed to that trendline failure.
One item that demands observation: the banks. I think we’ve got an incredibly exciting break here. Keep an eye on it, friends!