Gun Jumping

I may have bought back in too early, but yesterday I felt too late and this morning I was busy canvassing the city.  When I returned to my trading dock I was impressed with how the Nasdaq was holding on to the upper extreme of price.  If you recall this morning’s discussion however, you know the big red candle could be lurking just around the corner.

Today sets up tomorrow being a big red candle, thus it would have been more prudent to wait and see tomorrow’s action before initiating some risk into the tape.  Yet I did not, instead I pressed some chips into Google, Webio, and First Solar.

Should tomorrow open weak, I have a plan.  Today’s profile was sort of saggy, suggesting there may be some downside action below.  However, I am not taking a hot spoon of hope and letting another knife drive through my torso, but instead picking a line in the sand.  That line, which is always grey, resides at 3595.  This level is multipronged important to the bull case and if it holds I will drop the hammer, again, for better or worse.  Here are some illustrations highlighting the importance of this level:

Now is not time to be a coward.  There is a perfect right shoulder forming, do you know what that means?  It means NOTHING! …until it does, but for now it is just a layer of expectation for the chart chomping class.  Know your risk.