Fun while it lasted, eh? We’ll short the little sonofabitch again, for sure — just not today, with the week drawing to a presumably buoyant close. If I were to interpret the accompanying chart (see inset) as I would Gold’s, there’d be no avoiding the conclusion that the September E-Mini S&P is going to 1480.50 — equivalent to a 500-point Dow rally from these levels. The good news is that Mr Market will not possibly be able to avoid serving us a juicy short — juicier than we’re used to, anyway — somewhere near the target: the pattern is simply too clear to produce any other outcome. We’ll play this one from the long side while we bide our time, but for today I’ll leave it to you to find a way in that suits your style. With no more ‘external’ peaks to reference, finding camouflage cover is apt to be more difficult, although certainly not impossible.
