Good morning.
I’ll admit it. Sure, I’ll say it right out. I was completely relieved when I dangled off the side of my head, fired up my iPhone, and saw a bunch of red. After yesterday’s absolutely pointless mega-rally, I really wasn’t in the mood for anything but my favorite color.
I mean, just look at the ES. After yesterday’s eye-rolling, numb-skulled bull-fest, the price tagged TO THE PENNY the precisely level I identified as a potential peak, and then it spent hours jerking off in a comically tight range. It then took the escalator down to the next floor and jerked off there for hours. Security in this department store is going to be puzzled at the mess they find this the morning.
Looking at the longer-term chart, yes, it’s a relief that we’ve back off 4300 (to be absolutely precise, 4303.50, and no, I didn’t have to change that line) but what really needs to take place, God in heaven above willing, is to cut through the 4140 level in the next few days. That would provided the cinder block to the face that the bulls so richly deserve.
I’ll say yet again, I’ve been a serious chartist since 1987, and what we’re witnessing is the biggest, cleanest top I’ve ever seen in my life. And charting isn’t a casual thing to me. I built and sold a company based on charting. I’ve created, from the ground up, two popular charting platforms. I’ve examined literally millions of charts, written multiple books about technical analysis, do a popular show about charting as an original member of the tastytrade network, and have created 30,000 posts about them. So my bona fides are in good order.
As I mentioned yesterday, I went to all cash yesterday in my personal (ETF-based) account, which means I’ve got dick to show for my efforts this morning, since cash doesn’t exactly move. In my big account – – the one loaded with put options on stocks – – that’s still pretty much in place. Indeed, I went from 30 positions to 34 yesterday, and I’ve got 8.7% cash in there to deploy.
May God smile upon his chosen people, the equity bears, and smite the evildoers who defy them!
