Coming up for air.
We are in the midst of our first long liquidation of 2018. Before sellers gained control we pushed higher and cleared out the globex high. Markets rarely top out during extended trading hours.
Not that we know if we are topping out.
What we do know is sellers took control after a big round number on the NASDAQ behaved like a wall:
Man, 7000 was a wall #nq_f
— RAUL (@IndexModel) January 24, 2018
Listen, I have been bullish all week. I was still bullish this morning. But what the robots have been saying recently had me ready to pivot. The robots have been saying some shit.
Like Sunday, January 14th when they said a big red day was coming:
you will notice that in every instance there has been a few more days of rally, like 2-to-5, then a couple big red candles. THOSE RED CANDLES, those are distribution days. A futures trader can make a few month’s worth of gains on those days if prepared to do so.
Or Monday, January 22nd when the Exodus 10-day bullish cycle completed:
Bullish cycle complete, here is the Tuesday NASDAQ trading plan
Yesterday, close-of-business marked the completion of a 10-day bull cycle that began on Friday, January 5th.
The surface of my desk is a balmy 76 degrees according to a laser thermometer. There are various alerts singing out of the speakers of Mothership like, “POWER POWER,” and “warning…”
These are good days. The renkos are dialed in, the impulses are seeing carry through. A fast tape. NASDAQs are coming quick. And going.
The robots said a long liquidation was coming in 2-to-five trading days. It happened in seven. And only 2 days after the latest bull cycle completed.
If we can cut our inputs down to only the cold and dead and logical—what these robots tell us—and assuage the use of empathy and frustration and love for other parts of life, then we can morph our vision into something designed specifically to process information and act.
This is a much less confusing path to domination of the financial markets. The robots are our only true friends in competitive finance. Our companions. Our amigos.
Loyal, focused, robots.
I am grateful to my robot sidekicks. Let history show that I was kind to my robots and we coexisted in peace.
Raul Santos, January 24th 2018
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Robots are good. But you could smell this one. I think this dip could be over quick, the money just keeps flooding in.
Let history show..
LOL
“The robots said a long liquidation was coming in 2-to-five trading days. It happened in seven.”
Day 1 down 21
Day 2 up 73
Day 3 up 1
Day 4 up 23
Day 5 up 72
Day 6 up 57
Day 7 down 44
Days 2-5 were all up, so the timing is off.
More importantly, the magnitude/direction seems completely off. After going up 200, and finally going down 40, that’s your idea of a “liquidation?”
Contrary to what our Presdient thinks, wrting something doesn’t make it true. You may turn out to be right (the bull has to take a pause at some point), but it seems that you are popping your cork a little prematurely.
I was ready to extract nasdaq’s on the short side because I had a lingering expectation that sellers were going to step in. I don’t know if you understand how I trade, but what I was able to extract Wednesday morning during the long liquidation is enough for me to sack away and chill the next 2 months.
Plus my bias was bullish to start this week and all the way up until Wednesday morning I work so hard to demonstrate live exactly what I’m doing and I hope it comes through as clearly as possible I really try extremely hard to make my thoughts simple to consume.
You’re doing fine. Some people just like to bitch.
Raul, Your reponse is appreciated. Honestly, I do not read you blog that much, so I *don’t* know how you trade. My perspective is from someone new to your blog.
So given a message such as “a long liquidation (is) coming in 2-to-five trading days,” I read that as “postion short, expecting a payout in 2-5 days.” That doesn’t seem to be how you played it, so it seem that would be a misinterpretation of your post. So how did you play it? Did you just short at the 7000 resistance?
Thanks
To be clear, I did read some of your past entries, and I saw that you basically look for likely scenarios and then see which one is playing out.
However, that seesm like a day-to-day thing, so I’m not sure how the “robots” previous indication would be more instructive then just seeing the reaction to the significant psychological 7000 barrier.