I ask so little from life. It only takes something like this to put a spring in my step.
Of course, some folks on Twitter are more funny than factual.
I’m only awake at this uncommon hour since Mishka decided 4:30 was the perfect time to explore. I’ll thus share a thought or two and leave you in peace.
It was only in the wee hours between Wednesday and Thursday that the /ES made one last attempt to break out above resistance. I suppose its basis for doing this was because the market is so, like, totally underpriced and stuff. Plus, the economy is great, the nation is united like never before, and $40 trillion of debt is really just a number and not a hindrance.
In spite of all that, the market has puked all over its lapels.
The next key text is going to be if the support level holds (green oval above, red arrow below). This level has held for the past couple of weeks and is, by definition, the lower part of the recent trading range.
If in fact support does fail, the next, and much more important, level is shown below with the red arrow. In other words, there are a couple of key price levels that need to be puncture in order to complete what I believe will be the most significant bearish setup of the year, although it’s going to take some serious damage to get the job done. I’m hoping the earnings season will be just what the doctor ordered.
One big victory for me (well, medium, but I’m hoping big soon) is my Chinese short. Specifically, I bought, as I described it yesterday, and irresponsibly large quantity of September FXI puts at a strike of $36. So far, so good.
I am coming into the day at a 172% commitment level, and frankly my only regrets for this entire week are any of the bearish positions that I did cover, small though they may have been.
