Fake Rally Thursday – 2,100 and Bust (Again)

S&P 500 ETF2,099.73

That's where "THEY" closed the S&P yesterday.  Now, when I say "THEY", I'm not referring to any sort of shadowy market-manipulators who herd retail investors like sheep to the slaughter by triggering the technical breakouts they've trained them to obey by pushing TA like crack to traders who, frankly, a weak-willed and looking for an easy fix because they aren't willing to do the work it takes to understand the true complexities of the market.  

No, I don't mean that at all – I'm not a conspiracy theorist.  When I say "THEY" I mean the perfectly natural random action of millions of Traders making Billlions of trades that just so happen to keep hitting the exact same spot – no matter what crisis took the markets down – for 2 full years in a row.  Nothing at all to see here folks, move along…

We're fully trained at PSW to short the S&P at 2,100 (so now, in case you are one of those sheep who find my analogy too vague) as well as Dow 18,000, Nasdaq 5,000, NYSE 10,500 and Russell 1,200.  At the moment, the Nasdaq Composite is at 4,859, so way short and the Russell is even shorter at 1,147 while the Dow is at 17,918 so the S&P is suspiciously high and makes a great short – with tight stops if it breaks over and then we'll see if the rest make their lines.  See – now you know how to day-trade the tops. 

As you can see from JackDamn's Dow chart, we really peak out at 18,200 but we don't always make it there and we hate to miss a reliable short so here is where we like to start positioning for another sell-off.  Though we've had an incredible recovery (as in NOT credible) since June 27th's Brexit panic – that was only our first fear of summer (see other posts as I'm in too good a mood to go over it again) and there's still 60 days to go (my kids keep me informed of the count).  

As I said in yesteday's Live Trading Webinar, IF we survive the summer, THEN I'm willing to consider
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