What a nice way to start the week! On Sunday, the Satanic Dark Majesty figured they’d try to make a new lifetime high (circled part) on the ES (see arrow), but they just couldn’t do it.
As I (nervously) woke up Tuesday morning, and ES was up only 10 points, and then up only 5, and then it all became my favorite color. The “end of year melt up” that those at Goldman Sachs keep promising still hasn’t materialized.
Santa Claus can seriously bite me.
You can see on the NQ, on which I bought puts yesterday morning, that things pretty much fell to pieces and ended quite near the lows of the day. It’s enough to put a spring in my step.
The small caps were particularly weak. A few weeks ago, they were in lifetime high territory (rounded rectangle below) but then they did a Failed Bullish Breakout, after which time they've broken their uptrend and have twice (arrows) tried to recapture their glory days.
It’s all about Wednesday, folks. All about Wednesday, and Powell, and whether he’s going to continue to serve his billionaire masters or if he’s going to break ranks.
Sooner or later, he’s got to do it—he’s got to betray his friends—it’s just a matter of how long he can stand waiting for the inevitable. In the end, he’s going to wind up despised, and if he has a lick of sense to him, he knows deep down his future is bleak.
During last week’s absurd vault higher, I pointed to the crude oil chart as an important element of hope, considering its clearly well-defined rounded top. Well, mercifully, that has started to roll over, and the top is prettier than ever.
For myself, I remain so short I could jump off a nickel, with a full complement of 28 large directional positions (all of them in the money puts, although more and more of them February and March as I trim away from January).
It bears repeating: it’s all up to Wednesday. Powell will have to stab his billionaire masters in the back eventually, but who knows when he’ll have the guts to actually do the deed before inflation is running at 25% per year.