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.
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.
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.
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