As this Knight prepares to call it a day (it’s Thursday evening as I am composing this), I wanted to note that equity futures have finally managed to get above their resistance levels. Indeed, over the past week, the markets have been banging out a fairly steady progression of higher highs and higher lows. In other words, the bulls are finally getting a break.
The question, as always, is how high the bounce will go. For example, the first important gap on the /NQ is almost sealed, even now.
Whereas the gap on the /ES has a solid 90 points to go, toward the 3900 level I’ve mentioned a few thousand times. In other words, the /NQ has done a better job recovering than the /ES (and, incidentally, the /RTY has done an even poorer job of recovering).
As always, I got out of good long positions way too soon. Of particular note is LABU, about which I dedicated an entire post (and purchased at almost the perfect price point). It’s just about DOUBLED in a week’s time. Grumble, grumble.
In any case, when I wake up, I’ll surely be in “brace yourself, Tim old boy” mode.
I will mention one last thing – – I had stated in recent days how I evacuated a huge chunk of cash out of my brokerage account ‘for no good reason.” Well, that’s not entirely true. There WAS a good reason. And it was this: to keep that money from burning a hole in my pocket and going into positions too soon. I’ve always respected the risk we might get back up to 3900, and possibly even 4100, on the /ES, and I didn’t want to go hog-wild at these levels. Only semi-hog-wild. And that’s why I took away so much of my own buying power.
