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Plunge to a climax low


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#1 diogenes227

diogenes227

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Posted 23 March 2018 - 01:18 AM

From the link:

 

 

The all-important long-term breadth indicator – the McClellan Summation index — is on its fourth day down, making it obvious which side of the market to be on, but even more telling is that this is a wind down that began nearly two weeks ago on the first day down from the bounce top on March 12th (see the chart below).

 

There is a lot of stuff going on that could have led to this drop — Trump, Trump’s tariff plans, Trump’s saber rattling, Trump’s staff members bailing as fast as they can, the Trump chaos (we have a sitting President in litigation with a porn star and so far she and he lawyer are kicking his and his lawyer’s butt), uncertainties springing up everywhere; and the Fed is raising interest rates.

 

All that is taking a toll of course but this a market that has been moving up too far and too fast so the last two weeks were at some time inevitable.

 

For the chart and what comes next:

 

PLUNGE TO A CLIMAX LOW


"If you've heard this story before, don't stop me because I'd like to hear it again," Groucho Marx (on market history?).

“I've learned in options trading simple is best and the obvious is often the most elusive to recognize.”

 

"The god of trading rewards persistence, experience and discipline, and absolutely nothing else."


#2 diogenes227

diogenes227

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  • TT Patron+
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Posted 23 March 2018 - 02:57 PM

From the link:

 

 

The all-important long-term breadth indicator – the McClellan Summation index — is on its fourth day down, making it obvious which side of the market to be on, but even more telling is that this is a wind down that began nearly two weeks ago on the first day down from the bounce top on March 12th (see the chart below).

 

There is a lot of stuff going on that could have led to this drop — Trump, Trump’s tariff plans, Trump’s saber rattling, Trump’s staff members bailing as fast as they can, the Trump chaos (we have a sitting President in litigation with a porn star and so far she and he lawyer are kicking his and his lawyer’s butt), uncertainties springing up everywhere; and the Fed is raising interest rates.

 

All that is taking a toll of course but this a market that has been moving up too far and too fast so the last two weeks were at some time inevitable.

 

For the chart and what comes next:

 

PLUNGE TO A CLIMAX LOW

 

From the link above:

 

 

All in all, time for another bounce…

 

Except this time, maybe a crash into a climax bottom tomorrow and Monday instead (an echo of 1987)…

 

Turned out to be an "Except this time".  So the weekly SPY 265 in the money puts expiring today owned the day trade for a plus 200% gain as the ES hit my threshold of a big, big winner (that is to say two standard deviations of an average profit.

 

Have a good weekend.  For fun...and maybe some big profits Monday, do on some reading up on the crash of 1987.

 

All that matters is history.


"If you've heard this story before, don't stop me because I'd like to hear it again," Groucho Marx (on market history?).

“I've learned in options trading simple is best and the obvious is often the most elusive to recognize.”

 

"The god of trading rewards persistence, experience and discipline, and absolutely nothing else."