Wall Street went a tad crazy on Wednesday when a fresh splotch of drivel from the Fed hit the tape. Rather than focusing on what, if anything, was said, I’d suggest simply monitoring the charts, since they, not monetary policy, determine the stock market’s behavior each day. My gut feeling is that shares are very close to a short-able top, especially since Wednesday’s short-covering rally was caused in some part by traders who make a living throwing Other People’s Money at financial rubbish. If you feel they have acted recklessly, it’s a good time to place your bet. For detailed trading guidance, check out my latest tout for DIA — or click here for a free peek if you don’t subscribe.
Smells Like a Top!
- March 16, 2016, 9:17 pm
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March 16, 2016, 9:14 pm
Too bad the most fickle and frightened species in the animal kingdom is the short covering bear who’s essence seems to buy stop itself to suicide consistently like a pack of lemmings.
I had positions in TWM first shot at 46, watched it go to 54 and then back again. Second shot 40.6 near a D target, watched it go to 43.72 and then now it is coming back through. I am about to give up, I have no more confidence in sellers of equities since I cannot even hold a profit for more than three days and that is while being in a cat bird seat with theoretically no risk and will stick with CL. :/
My advice to all who know that the equities are grossly overpriced, pick your spot and take profit quickly when they fall fast and sharp, waiting for the big one seems less and less likely.
OH PS, instead of just ranting I thought I would contribute, CLM16 gnarly pattern A=39.33 on the 5 min, I sold the top with 1 tick slip and now have a risk free ride if anyone is interested it is screwing around, take a look and see if it meets your criteria for risk to reward. There are no downside profit targets yet, so the trade is blind reward wise, as of now about a 15 tick risk.