Anna here gang

Here is a chart on what the Institutions have been doing since July….I found it quite telling, tip to JJBlacksheep for getting this to me.

Thurday 8:30am is Jobless Claims, consensus is 510K previous week was 512K, if the number comes in  better than expected, we may test that 1108 that I keep harping on. Today (Wed) I mentioned I didn’t think we were quite done, and not to get into large trades in puts. I think we are close to a retracement that you can buy puts on but not quite yet.

Patience is worth it believe me. In options don’t go out far in time and way out of the $. As you have seen this strategy hardly ever works out, you want to do ATM or ITM options with about a month or more out not more than 45 days for me.

Glad we bailed on CTRP as it’s up over 10% AH and GMCR has come way back, I would like to see it about at 75 by OPX and the butterfly will work perfectly, I did do some adjusting, but most of you keep it the way it was.

Gold has kept going like a man with his hair on fire, I picked up some puts today and if it doesn’t pull in soon I will bail. I do not stay in losing trades. 40% is my limit down max pain

You all have a great night and see you on the other side.

Jack  has offered to help out since I must do an important errand this morning and thank you to him. I will be gone around  10:30 to 12:00.

My take is we are going to 1108, and then could either go down for a breather or melt higher. Low volume Holiday gang so tread carefully.  In the meantime the bears should remain patient till further notice My take is we melt higher

Jack here, I’ve been having a close look at the index charts this morning as it seems that we might make an important top today. I’ll start adding shorts significantly at SPX 1105 & Dow 10350. I’m looking to the Dow for an entry point as it is in the best technical shape, but I’ll be shorting SPX and Nasdaq as they are already breaking down and lagging the Dow markedly. The Dow, as I mentioned, is in good technical shape, and is still cleanly within the major trend lines:

SPX has started to break down on the last downswing, but has still managed to climb back above the key lower trendlines. It seems unlikely to make it back to the top of the expanded wedge on this upswing though:

The Russell 2000 index is leading the breakdown, followed by $TRAN & Nasdaq. $RUT has broken both key lower trendlines, and looks likely to retest, and fail, at the lower of those trendlines, which is the expanded wedge trendline.

We will be making a swing high today or at some point in the next week. If Dow & USD break out of their expanding wedges on the next equities selloff, that will most likely signal that a very key top has been made.

Update on GLD chart looks like short term puts would be good