As I’m looking through some of the breadth signals tonight, I find myself surprised that we haven’t had a relief bounce just yet. These days the market seems to be under a triple threat of bearish seasonality, the -rare-and-oh-so-obscure Titanic syndrome signal and, of course, the shitstorm that we used to call ‘European Union’. In these conditions it certainly seems that oversold signals really have to go to 11 to be of any value. While I am not going to pontificate on my macro thoughts on EU cluster.. ahem..bomb resolution as I certainly do not possess qualifications to do that (although it seems that anyone with a 3rd grade education has recently become an expert and advises everyone else on what to do), market crashes are rare events and since trading is a strategic game of odds, at this point I think the odds of a bounce are quite substantial. Whether it’s going to be just a relief bounce or a start of a legitimate new leg higher remains to be seen (I tend to think the former is more likely), should it occur, it will provide  opportunities to at least lock in some profits. Hopefully you’ve listened to @chessNwine market reviews and find yourself with plenty of cash you can quickly deploy on the long side.

Looking at the assets that were once known as ‘precious metals’, from my point of view silver is the most attractive one at this point and provides decent risk/reward for a long trade (buying AGQ or shorting ZSL would suit the most aggressive traders). Obviously managing risk is the most important job of a trader, so always keep that in mind. It’d actually be great to get a gap down and a flush everyone’s been begging for for a few days, so let’s see if our EU friends can bump the futures that are now up down and make that happen.

As cliche as it sounds, ‘plan your trade and trade your plan’ is as important as ever in these conditions. Looking at the stream of consciousness that is social media this days it’s certainly been emotional. 

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