Tuesday, September 22, 2015

Deadly Market

They will dump this market on air.  That is what happened in the European session, as Europe suddenly hit the panic button and handed off deep red futures to the US.  Normally these big gap downs are screaming buys at the open to sell an hour later but since we had an up day on Monday, and the equity put/call ratios were fairly low, I didn't bite on the tempting gap down play.

It is too late to short, but too early to buy.  I am eyeing SPX 1915, or ES 1905 as a spot to look for some dip buys.  If I do buy at 1905, I will not hold for more than 2 trading days.  Not interested in shorting unless we can get a bounce towards SPX 1970.  Ultimately, I expect a retest of 1867, within 2 weeks, and a marginal break of that level, causing weak longs to puke out their positions to the strong hands.

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