My distrust of this market has the meter pegged at about “100”, so as pleasing as it is to see the ES and NQ down double-digits, I view the entire affair with enormous suspicion. In any case, the market eroded drip by drip all night long, affirmed by a hard fall in major industrial player Caterpillar:
One small victory for the bears so far – – and, hey, I’m grateful! – – is breaching the modest support line I drew below (tinted in yellow). The much more formidable task is to break the now-legendary 2626 level, shown in green.
This week is going to be crazy action-packed, as I mentioned in this post. The CAT earnings is just the first of about fifty different meaningful events over the course of the next five days. I’ve got a very busy week here on Slope myself, and you can expect to see a lot of interesting tidbits along the way.
Risk-wise, I’m still kind of medium-light: 43 different short positions, about 130% committed, and about 40 others waiting in the wings.
