As this Knight prepares to call it a day (it’s Thursday evening as I am composing this), I wanted to note that equity futures have finally managed to get above their resistance levels. Indeed, over the past week, the markets have been banging out a fairly steady progression of higher highs and higher lows. In other words, the bulls are finally getting a break.
The question, as always, is how high the bounce will go. For example, the first important gap on the NQ is almost sealed, even now.
Whereas the gap on the ES has a solid 90 points to go, toward the 3900 level I’ve mentioned a few thousand times. In other words, the NQ has done a better job recovering than the ES (and, incidentally, the RTY has done an even poorer job of recovering).
As always, I got out of good long positions way too soon. Of particular note is LABU. It’s just about DOUBLED in a week’s time. Grumble, grumble.
In any case, when I wake up, I’ll surely be in “brace yourself, Tim old boy” mode.
I will mention one last thing—I had stated in recent days how I evacuated a huge chunk of cash out of my brokerage account ‘for no good reason.” Well, that’s not entirely true. There WAS a good reason. And it was this: to keep that money from burning a hole in my pocket and going into positions too soon. I’ve always respected the risk we might get back up to 3900, and possibly even 4100, on the ES, and I didn’t want to go hog-wild at these levels. Only semi-hog-wild. And that’s why I took away so much of my own buying power.