I rarely allow myself any personal time during market hours, but today I made an exception and had a nice long brunch with my wife and daughter. The moment we sat, the /ES was down 40 points, and I was sure this was going to be a great, profitable, don’t-have-to-do-anything day. By the time we left, for no particular reason at all, the /ES had reversed 60 points to the upside. Crap!
The chart below of the past few weeks concerns me. We were steadily making lower lows, but after last Monday/Tuesday’s historic surge higher, the bulls have become obnoxious again. The low we hit early today was merely a “higher low”, which is the last thing I want to see. It seems that only an oh-my-God CPI on Thursday morning can save the bears at this point. I disgustedly lightened up on my positions, reaching 12.5% cash, and decided to just let it sit until the all-important CPI. What a pisser.
