16285 is the Trend Line Intersection Today.
Its a pivot.
Be aware of how we settle against this t-line today.
In my opinion, too many people are falling all over themselves trying to sell the top here. They’ve been at it for 15 months. They have gotten a couple single digit corrections, but in the end have been chased out of every attempt to sell this market.
At some point, we’ll get the correction. I agree. But in the mean time, I think you buy dips with tight stops.
If you’re worried about a big flush, buy some cheap out of the money puts and forget about them.
Or have stop limit orders below the market, should the market start a big sell off.
When markets are at record highs, technicals become a tool for both bulls and bears to justify their bets.
I believe its more important to stay focused on pitches that look good, as opposed to swinging at every pitch.
Be selective,
This T-line may give good opportunity to both establish longs, and also, if it fails, to use it as resistance to establish shorts.
This should be an interesting week as we start into earnings season. A lot of people are looking for a correction. Yet the market holds in and grinds higher. Remember, the market doesn’t care about your position or your opinion.
Bulls get fat, Bears get fat, Pigs get slaughtered.
Take a look at these 2 trend lines in SPM if you are a bear. How would you feel about a break down to 1775 from 1853. That would be 19K per big contract, at $250 a handle. If you are a bear, here is your justification for looking for that crack. The cheapest way to play it is with a put or a put spread.
Check out this chart below.
CER