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All but the most agile of this morning’s faders jumping into inverse levered short instruments are being punished viciously by the market as this session is progressing. We are seeing some intense short squeezes across the board, delivering a homemade gluten-free, organic Whole Foods free-range farm produced Humble Pie to arrogant bears insisting that the market was incapable of rallying this much.
The S&P 500 is slightly above its declining 200 day moving average as I write this, but I expect that widely-watched reference point to be somewhat of a battleground for the rest of the session, as well as tomorrow. More importantly, I continue to monitor the health of individual setups underneath the surface as a better proxy for how healthy this market truly is. In addition to sinister, sexy short squeezes, I am seeing more tight bases and breakouts being permitted, which is obviously constructive for the bulls. Over the coming weeks, there is still more more to be done, despite the thrill of today’s session for bulls, as longer-term moving averages need to be negotiated.
We are all over the plays that are working well inside the best chat room community for traders in the world inside 12631, and no, we are not hindsight trading. Here are a few patterns and trades pointed out in recent days that are materializing well.
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That picture is sublime.