S is for Santa
The naked truth is windows were dressed.
Today turned out to be an uneventful day for the markets, until position squaring. It behaved like a summer friday.
Wednesday’s strong reversal propelled the market to protected territory, as we expected.
Although neither side won the early battle, the longs win was by default. The inability of the shorts to challenge the gap at 1407, and the equally important 1402 pivot, made the shorts limp off the field.
Pushing the beach ball underwater and keeping it there was the dilemma we saw.
The strength of the NQ (already testing the election highs) suggested the market has a similar agenda for the SP.
The heavy lifting had already been done, so cruise control was an easy game in the S curve move this week.
We cannot force trades.
Today was a day of frustration for both sides wanting an action/ reaction day until the end of day push.
When we have to scratch our heads so hard at the open to find a good trade, we better rethink our plans was a comment I made today.
At first I felt shorts would be run out of town early unless price could break the 14 area and seek equilibrium at the 1411. The 19.25 resistance zone was already hit, and savvy shorts used that opportunity premarket to shoot the gap.
My interpretation was that any pull back would be a profit taking move by medium term longs, and likely to be controlled.
The first few minutes of the IB gave clear signs of a lack of will by the bulls to take it any higher, so our target became focused on the 10/12 support for testing. We suggested range trading, trying for bites of two to three points.
The problem became the shorts were equally inept at making any progress below Thursday’s 10.5 angel.
The afternoon trade gave the shorts one more reasonable shot from the 14.75 demon, but stalled at the 15 minute rain line which I thought would be a challenge for further drift lower.
10% odds was all we gave to the shorts after lunch for a lower low.
The trifecta was lost in the last hour of trading, and we surmised the whole game was already won by the Bulls in a default mode.
Number crunchers won’t understand what I just said.
Students of the market will, and will also have anticipated this battle in advance.
If you had profits and were willing to play late, the cheap seats short near the 18 resistance was a good finish for the day.
Stand aside and protect profits, and let the big boyz square up unless playing position long is a conservative trader’s posture.
The erratic end of day bot war is typical of why we suggest sidelines for the end of day squaring.
Major themes should be remembered for consistent method players.
Born the King of Angels…