Good morning, everyone, and thanks for swinging by. We’ve got a lot of green on the screen again, as the /ES approaches lifetime highs.…..
……and the /YM (the Dow Industrials futures) already blew into new high territory yesterday and is padding its gains.
There remains one Odd Man Out, and it’s a doozy. I give unto you the /RTY small cap futures:
What I would point out about this chart is:
- The mass of overhead supply I have tinted in pink is a substantial impediment to prices pushing into that zone;
- This market has been remarkably range-bound for a solid two years running, in sharp contrast to just about everything else;
- Most extraordinary of all, the cyclic nature of this market is borderline miraculous. It’s extremely rare to see price action align so neatly with a rigid sinewave on the x-axis.
Based on all this, I acquired a large position of IWM March $200 puts at $7.33 early today. Time premiums these days have been squished to oblivion, and to my eyes, this is the best opportunity at present.
