When I did this ALL CAPS post in the middle of trading yesterday…………..
I was intuitively sensing the importance of the fact that a breakout which had taken place (in red below) had failed. Shortly after it did so is when I got all hot and bothered. Well, as you can see, my ALL CAPS nonsense was quite justified, as crude has fallen to pieces. I’ve said it before, and I’ll say it again – – I think the COLLAPSE in crude oil prices is going to make eyes bug out. All this political grandstanding about a gas tax holiday, and releasing more strategic reserves, and begging the Saudis for more pumping – – all a bunch of hoo-ha. Crude has already peaked, and those pictures of $7 signs are going to be footnotes in history. The recession is heading for a wipeout, and crude will follow it lower.
I am personally flabbergasted that the bull darlings got ONE STINKING DAY of relief before their betters got on top of them once more. We can see here that, having completed a well-formed base pattern, prices show higher, only to plunge below the horizontal again. The retracement tag was OH MY GOD PERFECT.
I can say the same thing for the /NASDAQ, and it was a double OH MY GOD here, because the /NQ hit its Fib perfectly (first arrow) and then puking below the base’s horizontal.
You’re starting to get the idea. Same thing with small caps. The relative weakness of the /RTY is quite clear compared to the /RTY, if you take note of how high the retracement was. In the /NQ, the power was enough to approach the high from a few trading days ago. In the case of the /RTY, it wasn’t even close. In other words, Cathie Woods’ funds are about to suck again, starting immediately.
Of course, there’s no such thing as a happy bear. I desire to be 1,000% short as of this moment, but I’m not. To my credit, though, I did……..
- Profit from yesterday’s rise by a huge DIA long (both accounts);
- Got the hell out, since obviously I’m not a bull;
- Pushed from 14 bearish positions to 21 (although 30 would feel better now)
As the Gold/Premium folks know, the Bear Pen has expanded significantly, so I’ll get the pick of the litter when it comes to new positions this morning.
