Throwback Thursday – Testing our Tops from Above

"How long, how long will I slide?
Separate my side, I don't
I don't believe it's bad
Slit my throat it's all I ever
"Turn me on, take me for a hard ride
Burn me out, leave me on the other side
I yell and tell it that it's not my friend
I tear it down, I tear it down

And then it's born again" – RHCP

Well, you can see why we remain skeptical with these low-volume rallies as we've now given up 50 S&P points since Tuesday's hign along with a whopping 500 Dow points and now we are testing 2,800 from above on /ES Futures and 25,600 from above on the /YM Futures.  During yesterday's Live Trading Webinar, we called for shorting the Russell (/RTY) at 1,560 and that's down 20 points, to 1,540 and that's good for gains of $1,000 per contract but we took a quick $750 and ran into yesterday's close.  

We also shorted Gasoline Futures (/RB) at $1.915 and, of course, we always go long on July Coffee Contracts (/KCN19) at $97 and Natural Gas (/NG) is getting to be playable again as a long at $2.80 (with tight stops below) but, since it's close to expiration on April Contracts (6 days), I'd go with /NGK19, which are the May contracts at $2.815 though even a stop at $2.80 would cost $1,500 per contract – so be very careful with those!  

The Fed was very doveish, as expected but what spooked investors in the end was their overall downgrade of the economic picture as Trump's Tax Cuts simply are not boosting the economy and his Trade Wars are hurting it.  The Fed keeps dropping subtle hints that such things are our of their hands to fix and their $4Tn balance sheet makes it very difficult for them to add any new programs to boost the economy – the best we can hope…
continue reading