The 2825-2865 Magical Range from Hell continues to hold sway. I should be thankful, I suppose, that I didn’t wake up to a vault above this prison cell. I’m not sure if this wide-open wheat field for the bulls has been discussed anywhere else but Slope, but it’s really all that matters right now. Until we escape, neither side is in control. As I type this now, we’re smack dab in the middle of this DMZ.
There are two opposing forces which are yanking the market either up or down. One of them is cold, hard facts. You know………the truth. Something in short supply these days. And that truth, in the form of bad economic data from Europe, is what clutched the /ES by the throat and dragged it lower in the overnight session.
The other side is what I’ve decided to call Titty Gwa. It’s the pronounceable version of TTAGW, which itself is short for Trade Talks Are Going Well. And by no means am I suggesting that only kind of fabricated horseshit coming out of D.C. has to do with trade talks. Certainly not. But the wearisome bromide that Trade Talks Are Going Well is hurled at the market whenever there is any sign of weakness, and by God, it has worked every single time, in spite of any logical reason to do so.
My focus persistently remains on the financials, which is the preponderance of my short positioning. Early indications are that this sector, thanks to the continued strength in bonds (and, thus, weakness in interest rates) will open up well again, Titty Gwa be damned.
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