Today is Labor Day in France, a public holiday throughout Europe. In Germany, it’s also Labor Day.In the UK, it is a floating holiday known as “Early May Bank Holiday.” Charming. In Italy it is “La Festa dei Lavatori,” of the Festival of the Public Restrooms, because there are so few of them.
And that’s about how it is.
In terms of the US market, we had one of the all time great shakeouts last week. Just look at that breakdown in the ES 24 hour S&P fucutures. It measured to 3970. Oops sorry. Just kidding. Down the elevator, up the shaft. Ha ha. But as I always say, it’s one thing to cross an oft crossed trading range. It’s another to breakout. That’s because when ground has been tread over and over in the space of a few months or weeks, the range gets thinned. There are fewer bids and offers, so prices can zoom upward because there’s no supply inside the range.
It waits at the top of the range, though, and at the same time, there’s a 5 day cycle sell signal. By rights, this “should” pull back. But there are no “shoulds” in this business. There are only ises. What is is what matters. So remember, there is only is, not should, is.
The next question is whether bears shit in the woods. The answer, as we know, is yes. And also in the fields, and on the beaches, and in the hills, and on the landing grounds, and in the banks, and so on. Are we out of the woods? No. Do bank failures matter? Apparently not.
Therefore, be on the lookout for shitting bears. What do bears do when they shit? They cover their shorts.
Technical Trader update for the longer term view coming up at about 8 AM ET.
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For moron the markets, see:
- Don’t Go Short if This One Thing Happens May 1, 2023
- Swing Trade Chart Picks – The Future is One Word – Baking Soda April 26, 2023
- Gold’s Lost Luster Will Shine Again April 25, 2023
- Enjoy the Market Mirage Now Because We’re Really In a Desert April 24, 2023
- The Fed’s Circle Jerk, is ‘Twerking? April 18, 2023
- Here’s How We Know That Doom Has Already Arrived April 6, 2023
- Macro Liquidity Says No Way Jerray! April 4, 2023
- How to Play When Fed Changes the Game, Not Just the Rules March 19, 2023
- Systemic Meltdown Under Way As Dead Bodies Finally Start Surfacing March 12, 2023
- Here’s Why There Will Never Be Bull Markets Until This One Thing Happens February 26, 2023
If you’re serious about the underlying forces of supply and demand that drive the markets, join me!
If you are a new visitor to the Stool, please register and join in! To post your observations and charts, and snide, but good-natured, comments, click here to register. Be sure to respond to the confirmation email which is sent instantly. If not in your inbox, check your spam folder.
