Let the Bear Slaughter Commence

Posted on Aug 27 2015 - 12:42pm by Sharpe Trade

It was a leap year.

Nikita Krushchev attacked the veneration of Joseph Stalin as a ‘cult of personality’.

Tunisia and Morroco declared their independence from France.

Elvis Presley performed “Hound Dog”, on the Milton Berle show, and later performed on the Ed Sullivan show.

Yul Brynner won Best Actor for his performance in ‘The King of Siam’.

Interesting year … 1956.

1956 was also the level we said to watch, on the e-mini S&P 500 September Futures contract.  We’ve broached that.  We implemented our thoughts and deployed cash into positions in our short-term stock trading account earlier this morning.  In the Stocktwits stream, we went long AUD/JPY at 86.19 in total, and my stop now remains at 86.20, or break-even.  For now, I’m letting that trade run higher, and seeing how much ‘umph‘ and punch higher I can get.  However, that’s just a short-term trade.

If I’m wrong, I can hedge out, having caught this nice pop.

My read at the moment?  Just my thoughts?   Retail will be far too slow to get in on this rally.  They are concerned that it will reverse on them once again.  They don’t know what to do.  Big buyers know this, and will press the gas pedal down … pressing their buys, assuming that retail will wait too long.  And like a dog chasing a car, they won’t know what to do if they join the bulls …

1 Comment so far. Feel free to join this conversation.

  1. NewLife August 27, 2015 at 12:58 pm - Reply

    I’m a bit upset at myself. My broker has market and limit on close orders. I saw the volume cranking up on the way down on all the indices so decided that yesterdays rally was likely to sustain.

    At 2:53 central time i entered a long market on close on QQQ,but missed in the literature from my broker that such orders must be entered at least 10 minutes before the closing bell. I wasn’t filled,and we’re up over 2% as i write this.

    I’m fighting the urge to chase.

    ALWAYS read the prospectuses.

Leave A Response