Took some profits on the open; probably take some more
if downside continues to fade. Looking for consolidation...
or possible reversal. If the former, will look for 20-25 delta
downside again, if the latter will start shorting vol depending
on market late today.
Daily, weekly, monthly charts still look down to me. Anyone betting on policy gets the pillar to post treatment. Pulling h/c bill is still a defeat and short covering at day end not impressive. Tax policy going to fail too b/c voter pressure has House members fearing for their jobs. Voter pressure looks sustained to me.
Rally based on destroying the environment, removing Dodd-Frank, taking healthcare away from millions of people felt like a non-starter..but hey, hope apparently springs eternal on the Street. The specter of Potus being charged w/ treason has apparently cooled upside momentum.
Simple reversals amid convergence of trend lines (trend lines getting closer together)
often provide short term buy and sell signals. Not depicted, but evident, is the loss of momentum
on rallies, lack of market breadth on rallies.
Fundamental micro does not support this market going higher so "bad data" can spark
big sell-offs. Durable Goods Orders missed...