Trade Plan for 9/30
Note: The price to new subscribers only will increase tonight. See the announcement here: Pricing Change
The weekly post should be reviewed prior to this. Link to The Week Ahead
As mentioned in the weekly plan, the end is indeed near. The end to the pinning action around SPX 5750 that is. We are still grinding higher, and we’ve seen this a number of times this year. Price gets extended to the upside (this time with a major SPX pin along with it), we grind higher→grind higher→late buyers get liquidated→buy the dip→rip to new highs.
Thus, if you’re a trader you would love to see some late longs have their stops blown, giving you a chance to buy a clean low for a rip higher. As mentioned in the weekly plan, we have some short-term caution signs flashing but sellers are a long way from putting buyers offsides. Thus, we welcome a rapid pullback with stops being blown on the way. We’ll buy that puke until context changes. With end of month and quarter Monday, there is a chance for this to take place if the pin doesn’t hold things together. Either way I expect the action to loosen up this week.
I’m stalking this trade and a trade on crude oil this week. See here for the Crude ideas Is Crude Going to Zero?