Weakening Wednesday – Did China Find the Market’s Achilles Heel?

Wheeeee!  

Finally a nice little dip and we nailed it yesterday as I said to our Members at 3:08pm in our Live Chat Room:

  • /NKD down 125 today but the US indexes could care less.
  • /YM 25,400 is a fun short with tight stops above.
  • /ES 2,760 finally got a reject
  • /NQ 6,700 finally caused a pause – also a good shorting line
  • /TF 1,565 is good to play for the cross below
  • DAX 13,400 is a good check line too
  • Check out the 5-year charts.  There are 30 year-old traders with 5 years' experience who have no idea whatsoever that markets can go down.  ?

I put out an Alert to our Members at 6:06 am (and tweeted it too) calling for profit taking on the dip, saying:

I'm taking the money and running here, /NQ was my play and now testing S2 at 6,644 and my fresh horse is now /TF below 1,550 (but I doubt it) with /YM at 25,235 and /ES at 2,738.  If anything, I'd play long for the bounce here but huge winner ($11K) so I'm just happy to watch for now.

Seems like we're only selling off because the Dollar dove and took /NKD down 250 and our indexes followed it lower – otherwise I'd be more inclined to stick with it.

/RB is still a good short at $1.85, of course, with tight stops above. 


continue reading