ES discussion for Thursday 8/20/09

the chart shows two overlapping sets. One is w the sliding // and the other takes the third anchor at the 8/13 high. The sliding and the upper// end up being identical. Note taken.

forgot to show my other set where the division line comes in right here. anchored at 7/31 low, 8/7 high and 8/17 low

looks like this is breaking out, bullish creep

also watching trannies

And there's the pattern pop, as expected. Sometimes it's just so obvious and so clear what they will be doing.

but sometimes they also run out of steam after the pattern pop

everybody is just jumping on the dips these days. crazy.

Yes, that's why I wanted to watch the price action to see if they were going to do a pop and drop. But those generally happen fast, and this just sat there, so it was clear that was not the intention. Hence, just ride and let it go. Like I said, my plan is long, long, more long, and take a quick shot, perhaps with puts, at key daily areas where I see a reaction. Otherwise, just look for a setup on every checkback. I'm saying I think this is one of those rare, golden times when one can lean on the market because it's like the direction is set in stone before the day even starts. They keep bringing it in, and then up to a new high it goes. Over five straight months now. So, play it until it stops is my philosophy.

as far as lines go the next spot this should go to is 1012-13

Yes, just be cautious starting in here because my IB work and another wave count thing says this could crap out any time from here to your 12 area. It may blast off if it gets over that level, so I'm of the philosophy that I want to give this room here, but I am ready for it to also end here, temporarily, of course, as we all know we'll be at new highs for the entire bull very soon :-)

Yep. I've got an ending wave count here, the 150 IB, a key GLOBEX line, GLOBEX .786, a lot of things, and it closes right there. That may mean:

a) we head down a bit from here, or much, much more likely in my opinion:

b) it gaps well over the area tomorrow and we see new bull market highs

c) none of the above

I think the odds favor b) by quite a bit. We'll see. Calls off that .886 gap retest at yesterday's open look brilliant so far.