Whack The Bears One-More-Time

The daily chart above, shows our current location.

Inverting the chart and expanding the price action gives us the following:

Was today an attempt to break the up-trend (down-trend, non-inverted)?

Wyckoff called this type of sharp adverse move ‘threatening action’.

You won’t know if the market’s going to carry out the threat until the next session or subsequent sessions.

Positioning:

My firm’s (core) short position remains unchanged (not advice, not a recommendation).

However, the main account holding of LABD, was reduced by approximately 2.9%, during this session to adjust for margin requirements.

It’s important to note, the after hours session is already trading about 1% higher (for inverse LABD); a typical occurrence when the day’s move was a shakeout.

We’ll see if that action carries over to the regular session tomorrow.

Stay Tuned

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

The Danger Point®, trade mark: No. 6,505,279