9/24 Redux

ES 10.01.09Yes Dorothy, we have topped out for the near term hitting the ’02-’04 resistance which even Carter Worth from Oppenheimer mentioned on CNBC tonight (see video at left).   *woo woo!*  Yes I’m shamelessly patting myself on the back for calling that back in my post from 9/24.  That makes any trader want to high five someone to know you got it right [at least once in a while].

While I do not feel we’re headed to the bottom tomorrow, I do feel we’ve already begun a correction.  Click on the chart to see where I feel we go from here.  Still have my hedges in ES_F short and longs in DRV & EDZ [added to short the emerging markets as its been outperforming FXP of late].  Keep your powder dry Dorothy, we’ll have another chance at a leg up.  Just be patient.  Oh, and Carter…………..need an Assistant?  [hey, I can dream] LOL

[Edited to add] For the day traders in you, have at it.  Me?  I’m going to scalp in/out of my inverse and not risk day trading any longs here because I feel it will be corrections like this that will eventually shake out the weaker stocks, those with flimsy balance sheets.  As 3Q earnings are further released, some of these weaklings will not recover as easily or quickly as the strong so why risk buying something here and taking a loss [I hate any loss] unless it’s to add to an existing long – and even then I will do so during Wave C.  Not here.

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