two words...."controlled speculation". commercials are very bullish if the COT report has any value. These gap downs are just a mechanism to kill some speculative call premiums, increase premiums/charge higher prices on new option activity (high implied vols), force out weak hands and trap more bears....again and again and again..... it also gives 'em an opp to prop up bonds.
and last night:
Sell signal still intact, but some observations about the chart:
The histogram portion of the momentum oscillator, though still red, is in the buy zone. It's been spot on calling a low a few times....and others it was quite a bit early. Note the slope of the momentum oscillator closely resembles the April 11th low.....90days ago (Gann time).
The trendline that held the last selloff has yet to be broken.
The candlesticks are moon phases.....look what happened after each of the previous blue candlesticks......
Heavy resistance near-term between ~1530-34 on the e-minis....also where the bulk of today's heaviest volume resides....a magnet for a retest ultimately, along with the unfilled gap.
Well the trendline held and the moon phase cycle low is doing what it has consistently done since the March low......trap more bears.....again and again and again. The Rydex timers have been nailing it...shifted $100M+ out of bull funds on Thursday, purchased $25M+ bear funds Monday and sold $25M+ of the bear funds yesterday AND moved $100M back into levered bull funds. Engineering at its finest....again and again and again
