Junk paper has taken a nasty hit this month, but it occurred within a massive distribution pattern that has been building for more than five years and which overlooks a very deep chasm. The implication is that there’s plenty of opportunity to the downside, and so we’ll look to get short on rallies like this one. Hidden Pivot targets on the daily chart can be used to leg into calendar spreads over several days, but lesser targets may prove useful for legging into riskless $1 and $2 vertical put spreads intraday. There’s no hurry because this EFT can’t help but rise as long as the broad averages are rallying. In any event, we’ll want to get short before year’s, so tune to the chat room for real-time guidance if you’re interested.
