If one were to glance at the headlines this morning, they would assume the market was in a free-fall.
That would be an understandable reaction. When I hit the sack last night, the ES was down something like 35 points. Everything was red. All eyes were on China, as it prepared to unleash the Kraken on Hong Kong. And yet, in our perpetually-captured market………..
Indeed, at the moment the “Futures Slide” headline hit the wires, the ES was already up 7 points. And it isn’t because there was a cure announced, or a new $10 trillion “stimulus” program, or that China said it was only joking. It just came from……………nowhere. (Although probably in the vicinity of the Eccles Building).
As impossible as it seems that the Fed could ever, would ever, might ever lose control of this “market” of ours, I continue to keep my eyes on the big picture, which is quite plainly vulnerable.
My trading, however, is decidedly light these days (in fact, my main concern went I went to sleep last night was whether I was too light; these fears have now dissipated). I am 93% committed in 39 positions, and I have no intention of ramping up until I can witness some kind of core breakdown. These little overnight teases don’t cut the mustard.
The good news for Slopers is that my time and attention is instead devoted to product development. Lots of dynamite stuff coming down the pipe, folks! Stay tuned.