I worked pretty late last night, and I couldn’t help but take a glance at the /ES screen every few minutes. I had ended the day very, very, very short, and worry started to cloud my mind.
The market had been battered down to the lows of last Friday, which at the time was an important short-term bottom, and I wondered to myself if I was setting myself up for catastrophe. The market already seemed to be going into “healing” mode, and who knows what shocker of a headline I might wake up to in the morning. When I turned my monitors off, the /ES looked like this:
When I woke up at 5:15 a.m. to get my day started, I was more than a little relieved to see the point when I had gone to bed (red arrow) was precisely the top of the “healing“, and all markets bled red through the night. Huzzah!
But here’s the key thing – – and it was the point I was making in my “Something’s Coming” post from yesterday – – the real challenge is to break the low from a couple of weeks ago (red oval). Because if we can do that…….
………then we have completed an absolutely monster of a top, which should pretty much set everything aflame. So that’s the goal, my fellow (two) bears.
Contemporaneously, a successful completion of the top on the /NQ would set off, in my opinion based on doing this since 1987, an absolute SHTF moment.
Precious metals remain a cruel joke to anyone who considered them a safe haven during war. Gold has lost more than $1,300 (!!!!!!) from its price peak.
Silver is in even sorrier shape, trading at about HALF (I say again: !!!!!!!!) of its peak price.
One item that’ll also help the one or two bears that has stood steadfastly by my furry side is the semiconductor sector which, as I wrote last night, should have the go-ahead to fall hard now that Micron’s earnings are out. The SMH is in a steady slide already.
Lastly, Bitcoin, which I am also short, may well power the way lower. It has already had a hard reversal from its horizontal, and my medium-term price target of $35,000 still stands.
As I am typing these words less than half an hour before the market opens, we are merely five points on the /ES away from support failure. Let’s go get ’em.
