Thursday Bounce Line Failure – Trouble Ahead?

This is not what the bulls wanted to see.

In yesterday's PSW Report "Weak Bounce Wednesday – B-B-B-Brexit Baby!," we called for shorts below 20,600 on the Dow Futures (/YM), 2,350 on the S&P Futures (/ES), 5,406 on the Nasdaq (/NQ) and 1,360 on the Russell (/TF) but we had a pop in the morning and only the Dow went below our line but, in our Live Trading Webinar, we decided to short /TF anyway with 4 short at an average of 1,371 and, now that we're below that line, we can take 2 contract off at 1,369 for a $400 profit and put a stop on the last two at 1,370 to lock in at least $500.  

We're also excited about an opportunity to short oil again as it tests the $50 line this morning (/CL).  Brent crude (/BZ) is also at resistance at $52.50 and we won't short /CL with much enthusiasm (so very tight stops) if  Brent is over but $50 is a tough line for /CL to cross – so it's well worth a short as we get over $49.85 with tight stops over the $50 line, which limits our losses to $150 per contract.   

Over at the NYMEX, there's more than 3 weeks left to FAKE!!! demand but they are already faking demand for over One BILLION barrels of oil for delivery between now and July 20th.  That's only 113 days away so the open contracts on the NYMEX are PRETENDING that they are going to order 9.5 MILLION barrels a day to be delivered to Cushing, OK, a facility that can only handle 90M barrels TOTAL, IF it were not full – which it is.

Of course, it's not a great day to short anyting as we're into the normal end-of-month window-dressing so we can expect everything to be propped up a bit.  Even the Dollar is back over 100 (good for $500 per contract on /DX, you are welcome!) and Apple (AAPL) is testing $145, which is now over $1,000 per share pre-split (7:1), up from $85 (pre-split) when I used to foam…
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