Fear not, longs.
The charade continues as Thursday’s support provided enough momentum to propel us to another new high.
It was a do-over for the market; an MATD market Mulligan.
Knife downs lately seem to serve the purpose of finding deep support, then attack new highs.
Friday’s trap and squeeze was much less noteworthy than Nemo’s double fisted knockout punch to the North east. After the IB was in place, price acted like the stranded motorists on I25.
We thought if long. capture by the 14; and any day high available, with likely next target the 16 to 17.25 range.
In this manipulated environment, we sensed it would be git’er done early and chop, anticipating the challenges of a snow day closing in on us behaving like a slow summer Friday.
A reversal day needs to follow through and make a new high, however marginal. At this level, we recommend traders be on the lookout for fast drawdowns south side, and wary of expecting too much in the way of breakouts.
The last month has seen twenty to twenty five point weekly ranges; possibly showing churning. Somtimes that stall just means it is allowing longer term moving averages to catch up, and it is an inflection point. Shorts have failed miserably this year in showing any kind of sustained move against the PPT induced rally since last November, and prior to that June of 2012.
Manipulated moves like this are hard to understand, especially if we don’t reconcile it with the inflationary effect of currency devaluations.
We are less than ten points away from our next high value target, and anything goes when we get near it.
Thirty- four inches of snow was predicted “back home” with Nemo’s arrival, and they got forty. Speculation is a bit like that; it is a science, but not an exact one.
Charts show the squeeze mechanism still in play, and none of these sins will go away unpunished.
The currency devaluation is transparent to all but the most novice of market students or to the PPT’s cheerleaders.
A few videos to show Friday’s ideas.
IB price squeeze and building range.
Git ‘er done day plays out.
Punxatawny Phil not going to pull any white rabbits out of the hat for a long time…