After a couple of modest down days we see that intraday QQQ did close the gap from 9/5/19 and bounced to fill today's gap down as well.
Index is primed and loaded for final push to double top and possible new ATH. I bought Sep 190 calls and sold the Friday 13 192's to hedge.
Looks like end of a Fourth Minor Wave, IMO; The EW is now evident and P/C ratio is up again, VIX was up today, bearish sentiment means time to bullup again.
Intraday at 2:15pm we see an A-B-C correction following a 5-wave minute EW bullish impulse from noon. Expect EOD short covering rally and higher by EOW.
Short again when sentiment reaches bullish high. GANN: Most new ATH occur in September! A real possibility. Would not short this Cup & Handle formation!
Terrific bullishness in RUT leads the pack, other indexes should follow suit. DJT is also bullish, which is a leading indicator.
As usual, just an idea, not advice; trade at ur own risk, GLTA!
Trade active
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BAM!
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Closed for a nice daily gain on pump & dump. Opened a few small shorts just in case this thing rolls over again. Still expect higher but shorting puts rather than buying calls now, hedging. If it does manage to creep higher will feed more in. Weakness in IWM with strength in QQQ today reverses Tues pattern, suggests rotation of assets in/out of these issues with little new money flowing in at this price.
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Index reached overhead resistance at 192 has bumped this zone since 9/5 gap; might be a rejection pivot, have to see if enough momentum can carry to tar zone. Good place to lighten the load IMO.
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Pushback from 5 Sep price, exactly at 192.40. I suppose they will try again.
The big move will happen tomorrow night, ECB meeting.
Have no idea which way though.
DaddySawbucks
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@hungry_hippo, Good idea, ty for comment. ECB under pressure to remain Dovish IMO. Took this small long; no shorts atm. Going into FOMC next week expect optimism.
@DaddySawbucks, when you buy calls, I'm supposed to buy puts, right?
DaddySawbucks
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@hungry_hippo, "People smell better than Reindeer; wouldn't you agree with me Sven?" "In general that's true, except when it comes to you!"
Usually u r rite; however in this instance, I fear we could both lose, and I hate to see that happen!
We got a piece of action from the shorts today, I don't see it tanking off 700 pips again just yet, fear has gone out. But I been wrong twice now...
hungry_hippo
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@DaddySawbucks, I'm just kidding, I have no idea which way the market will go tonight. Afternoon action looks bearish, but you don't know until the last 5 minutes when the computers start buying futures.
FAANG stocks look weak, and small caps look overdone. I'm gonna sit on the sidelines here.
DaddySawbucks
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@hungry_hippo, As am I. Prudent! Look at Euro bourses... same pattern unfolding in FTSE, EOD short squeezed. Here we go...
hungry_hippo
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@DaddySawbucks, SPX is showing a pennant. Could go either way tonight.
Have no idea which way though.