SPX: Distribution top

4 сент. 2016 г.

It appears that commercials have been building very large short positions all this time (see latest CoT report), while RgMov was moving lower and lower, showing us that there was a lot of hidden selling in the background since July 18th where the SPX's RgMov line topped.
We are in a tight corridor, probably awaiting a fundamental catalyst to unleash a strong breakout to the downside here.
In the mean time, playing this range as a short term operation is a smart thing to do.
I'm holding short positions, speculating on the eventual breakout (I shorted at 2183.3, stop at the highest high +1 tick).
I'm also long VIX, using calls and spreads, but looking to play the short term swings using some derivative here.

I'd reccomend watching this chart's updates as they come, we can have quite a few good trading opportunities in this juncture.

Good luck!

Ivan Labrie.

10 сент. 2016 г.

Заметка

The speed line has been seriously compromised, we're short, and holding positions safely. I'll post an updated chart today. It could be a terminal pattern at play...