Day 6 of the rally.
I'm not upset because I wanted to crash, I'm upset because we didn't get a proper correction and now, this low-volume move back up doesn't give me enough confidence to enjoy the rally or assume we'll get to higher highs than the ones that have been rejected before.
How many times can we rally because we made progress on fixing things that weren't broken in the first place? What's next:
- Mars is invading
- Trump is talking to Mars
- Mars is not invading – market soars to new highs
Have we really gotten this stupid? What happened to trading on earnings and performance? I'm a Fundamental Investor so of course I don't like it when the Fundamentals are ignored – it's very annoying. It doesn't stop us from making money, however as yesterday, right in the PSW Morning Report, I said: "The Russell (/RTY) is lagging in the recovery and can be played long over the 1,520 line but with tight stops below because NOTHING actually happened since the Russell was at 1,620." As you can see, we got a lovely pop off that line at the open:
Oh yes, I should clarify, that was early in the Morning Report (it's sent out to our Members while in progress) but, at the end of the morning report, I said:
We're well over all our bounce lines now so we can't make any bearish bets but what the Nasdaq 100 (/NQ) for a possible rejection at 7,500 and, of course, 2,900 on the S&P (/ES) and 26,200 on the Dow (/YM) also seems to get rejected a lot but we should still squeeze out a quick 15 points on the Russell (/RTY) at 1,535 before that happens and +$750 per contract is a great way to start the week off.
So 1,535 was our target and it was a pretty good one – as you can see from the chart. At 12:24, in our Live Member Chat Room, we flipped bearish and played the Nasdaq Futures to go lower: