Tuesday, November 4, 2014

Morning Charts 11/04/2014 SPX /es

The futures tonight and in the morning will be fun to watch I suspect. Till then, it should be a waiting game. 

There are certain days when Zero Hedge hits on all my thoughts -yesterday was one of those days - 

What have I been saying for a long time that was proven in July and again in late September - Vaporize. Take your profits and let the rest run - at least for now. Have an exit plan - use options to protect downside on long term holds so you at least have time to make a decision if things go south without being exposed to much of a loss. You can also use that point as a definitive floor or pain threshold where you finally bail. That decision will have to come, be prepared. 

As I have warned repeatedly, there will come a time when (those that are left) will all want out at the same time. I suggest you be out before that hits. This run, regaining the 10% loss in record time, sure has all the earmarks of that last bull trap. This post from Zero Hedge hits on that thought - Bubble Exit Rule - I also like it when the "experts" hit on an STB call that is close to 5 years old now -  

"Those expecting hyperinflation from these money printing measures will have to wait awhile. It will happen after deflation engulfs the world and those in power panic. "

As for this run, a hint of what it's partially made of (buybacks) and the result of what happens when it (buybacks) suddenly stop (without the prior liquidity pump as support) see this.

And finally see - Something is Seriously Broken at ZH - Dislocated does not even begin to describe this market. A picture can tell 1,000 words. 

On to the lie - 

SPX weekly - Without comment. 

SPX Monthly - Sooooo close. 

More to come below. 

Have a good day. 

GL and GB!

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