As I have already shorted this market, I do not want to see this rally back too hard over the next 48 hours.
I shorted small on Wednesday morning, followed with a second short late on Thursday evening. I have not caught all of Wednesday’s fall, but I believe the second level that I have got in at – 11900 – has made me happy. I think that we will see a mild mannered attempt to break back above the 200-day moving average (black line on my chart below) or 12,000 itself.
All gains are capped ahead of 12,100, but we should see a continued channel of trading between there and 11,800.
The 11,800 zone is where all the higher lows match up and of course the 20-day exponential moving average (EMA).
As we broke toward 11,800, I nearly shorted all of my pot that I have been holding and waiting to be put to use, but as we get closer to the main ride beyond the greasy slope and leave that level for dust, it is only then will I react menacingly enough to feed my family for New Year. It will be one hell of a feast!
Good luck and profitable trading.
And God bless of those who passed in World Wars I and II and those who have died in vain more recently.
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Matt Shaw quit the rat race a decade ago to take up trading financial fixed-odds betting and has not looked back. He trades for himself and mentors others via fixedoddssuccess.com
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