The purpose of this blog is to provide a unique insight into trends that guide market prices. It is intended to educate and show you characteristics about the stock market, of which, the so called "professionals" have no clue. Traditional technical analysis is almost completely worthless and that is one of the main reasons for the creation of this blog. If you enjoy market analysis and information that you will find nowhere else, this blog is for you!
Tuesday, January 28, 2014
200% Short /ES @ 1786.50
I am back to a leveraged short position in the markets. After reviewing the charts and seeing weekly resistance being tested in the SPX I decided to re-enter my positions I exited Friday and Monday.
A daily close above 1793 on the SPX will probably negate the current down move. However, I expect a move to 1650 before this round of selling is over. The next 3 days and 1st week in February will be crucial for the bulls. As shown in the chart below, once 1750 gives we should see a quick swoon to 1650-1700. At that point the backbone of the bull market will be broken. Volatility will be the name of the game in 2014 and should be a great year for traders.