It has been 53 miserable days since the dramatic reversal of October 13th. Since then, the fetid stench of bullish arrogance has saturated the air, even on my beloved Slope, as the reckless confidence so often found in Wave 2 counter-trend rallies has once again exhibited itself just as it has through all history. For the immediate moment, we are enjoying some weakness on the /ES, as I type this moments before the opening bell.
Jobs One is to undo the utterly absurd rally which took place on Friday in the face of ostensibly bearish jobs data. Job Two is to take out the October 13th trendline, circled below.
I must say, I’m starting to cool to my energy shorts, since not only is crude oil the only strong market right now, but in spite of its brief breakdown last week, it has plenty of upside opportunity. I’ll tease out what to do in the first half hour of the trading day.
Let’s get warmed up for the day with some Primus again, shall we?
