ES TO THE MOON WHERE WILL WE STOP?
Forget about the Vix the VWAP and all the other garbage out there about why this has to come down and the economy is going to crash. More people have been cleaned out trying to short moves like this than any of us can count. It will become clear when a trend change is here and until that time what is the point? Just go back and look at chart patterns like this and you will get the idea. There will obviously come a time when things change, but until that happens there is no sense in getting bled dry trying to short this move.
I saw someone mention the other day somewhere that the market was going higher on short covering, really? Who exactly and where are those people who are short. This is a bull market short covering is not driving this. You would have to be a central bank to have deep enough pockets to short this for this long and still be solvent. I have been telling Newsletter readers to stay long each month and this is why. This is a trend and we need to ride it. There are always chinks in the armor and there are a couple here, but until we get some type of price confirmation they need to be ignored.
The chink if and when one develops is going to be higher interest rates. We do not have that as of yet but stay tuned. If rates to begin to rise things will change.
TRUE TO MY WORD
I mentioned we were going to be keeping the stops back in the Swing Service going forward and here is an example of a painful trade that finally payed off by doing this. We shorted Copper where indicated on the chart and kept the stop above where indicated for several days before we finally got the payoff and a decline where we exited. I have specific exit strategies that I follow and just like with any other strategy, they are not always perfect. In this case this trade was a two day exit after break out, so we exited on the second day where indicated. Today we are down again at post time so it could be that this keeps going, so be it. I have found with the specific pattern I used on this trade that over a large sample size the best results are to exit on a 2 day breakout. Some times they keep going. We took a decent profit on this trade so what it does now does not matter. If we had been using a different pattern for entry, the exit might have been such that we would still be in. It wasn't so time to move on.
I will be back home finally later today after a week long trip and will be able to post regularly once again. The trading signals might be a little late today due to travel schedules so bear with me.