Wednesday, September 16, 2020

Danger is near

There is nothing but air supporting the market if we drop out of the rally channel around the 3300 level.  JP Morgan is warning you ...




The Federal Reserve will announce an equity stabilization facility -- authorizing purchases of index ETFs such as $SPY and $QQQ -- at the December meeting.




lyrics by Killing Joke

Overcast the branches bare The autumn leaves have fallen I can hear the magpies laugh I can't shake this melancholy And then the cloud breaks A ray of sunlight gloria As if a promise Some strange kind of euphoria Dark phantoms of the past Some things are best forgotten Like Orpheus don't look back The best years are waiting for you And then the cloud breaks A ray of sunlight gloria As if a promise Some strange kind of euphoria And then the cloud breaks A ray of sunlight gloria As if a promise Some strange kind of euphoria Euphoria euphoria euphoria



16 comments:

christiangustafson said...

Yah, if the channel is breached (the rally finished @ its dead-center), and then retested from below, we're headed across the giant megaphone to a low of 2125 or so EOM September. /ES futures starting to sell off tonight.

I feel like reading the Studs Lonigan trilogy. I'm feeling very wistful lately about the insane extent of the destruction of once-lively neighborhoods in old Chicago. Most of where Studs ran back in the 1930s is simply gone now, vacant lots.

christiangustafson said...

/es getting rekt now overnight; may test 3300 soon!

cbasten said...

I think we test 3300 soon as in today

christiangustafson said...

Yeah, so then where is support? The 200 DMA is at 3100.

You can see both the megaphone and the channel I'm talking about in that chart.

Love it if we could cross the megaphone into EOQ.

christiangustafson said...

I want to buy the dip into the Election. I also want to sell the heck out of the profound collapse that follows.

All green candles are lies!

cbasten said...

Are you buying this dip then?

christiangustafson said...

Heck, no. I will buy the EOQ if we cross the megaphone structure.

cbasten said...
This comment has been removed by the author.
cbasten said...

Is that 3100 on ES?

Kevin said...
This comment has been removed by the author.
Kevin said...

"Is that 3100 on ES?"

More like 2100

christiangustafson said...

3100 SPX is the 200DMA -- we should at least pause there, right? 2125 is the bottom of the megaphone EOM/EOQ.

After that I would guess we'll get positive polls for the POTUS that will lift us nicely into the Election, when we get the legal challenge limbo and a true crisis of régime.

cbasten said...

I think I should have closed my puts at EOD. Holding overnight is always a risky move

christiangustafson said...

We're out of the rally channel now - re-test as OR? Quad-witch...

Then, Monday.

el mar said...

https://www.tradingview.com/chart/SPX500/9Q5jeru4-The-S-P-500-will-tell-us-what-it-s-up-to/

christiangustafson said...

On the /ES, W2 retraced half, W4 has already found the .382, and W5 may be expected to "extend". But where to?

If we slip at the 200DMA, where will we get up again? The complacency in the volatilities is nuts. I seriously think something breaks and we waterfall these thin, fake markets.