Okay, I'm still trying to get my footing here with this new format. I'm not sure where I'm going yet. We'll see...

I'm going to just do one post here to sum up some thoughts. I hope you can follow along. Recall I said I thought the market would sell if O'Bummer got it. Recall I said the pundits all said it would rally if he got in. Recall I posted the well-known floor trader said buy puts on the VIX. And notice my sarcastic post about how all those guys were right. I even used a quote from my favorite book Reminiscences of a Stock Operator: "And no let up in the rising tendency..."

Let me ask, do you think that I think these guys are really good? That's a rhetorical question. Did I mention how strong they made it look? (See last paragraph.) Now, what did they do? They set the new high for the move. By how much? One tick. Hmmmm, ever seen that before?

Now, do you think they knew what they planned to do, or did they, suddenly, out of the blue, act by the seat of their pants? So, they brought it up in a huge show of strength, and then dropped it almost 50 points in a smooth trend down. But wait, who has been talking lately about how they make it look one way when they plan to go another? Now we see it in even a monster move, not a smaller move. Same old, same old.

Let's talk areas. Did I post upside areas? No, I posted two downside areas. But wait, didn't I say way back isn't it interesting how I pretty much only post areas on one side of the market, and, in my opinion, the market seems to go in that direction. Hmmmm, market going straight up, and Jim left off with areas on the downside. Way down. How odd.

Now, I recalled an area I posted way, way, way back. Around 80. I was going to say 'low 80's (key .382 is at 84.72, you think that's not in my grouping???), but let's just stick with 80 area. This is a much larger, intermediate-term area. From the overnight high is was about 50 points away. Let's say 80 is 'center of area'. Do you think 84 (with the key .382 at 84.72) is a hit? How about with a very large 1-min volume climax?

Now, just for grins, draw yourself in the most obvious SL on say a 240-min all-sessions ES Z2, and tell me what you see at the low? Would you say it hit my area? The ES then starts a bounce of 14.50 so far.

Now, let's look at a few other things quickly, then I'm done with this post. Okay, what kicked off the selling? A 'W2' DB ABCD. On the way down it did multiple ABCD's, and other corrections that were highly, highly useable for entry by the methodology, as any advanced student of mine should surely tell you. I've shown the techniques for that. In other words, and only in my opinion, there were at least eight entries on this. The last one or two were higher risk because of how far it had run already, but if the area of concern was that low 80's, the risk was less than one would perceive just from the size of the move.

Now, to sum this up. First, all the above is just my interpretation, no claims of any kind whatsoever. Second, is there anything here that isn't just the same old, same old from this methodology, or my posts? Seems to me it was all there. Wasn't this just a fractal of the very same approach I show day in and day out on the lower timeframes? Right down to my witty and sarcastic comments, and the posts about what the media is spewing out shown to make points.

Uno, dos, tres, cuatro, cinco, cinco, seis...

Give it to me, Baby.

Get it?

Let me just add in that this area here is a very key spot. .300 off the sell, major 'backtest' of not only a really key line, but the obvious 'breakdown' area. The things I don't like about it are that it is fairly obvious, and the sell was so extreme, so harsh, it may need more. Maybe even quite a bit more. If it ever does get to a truly impulsive phase on the higher timeframe, then a checkback like this should be completely adequate.

What I'm saying is, this is a key area, it surely 'sees' it, but there is no downward reaction so far. It may be sold out for now (it needs time at this area), or it needs more. It probably needs more, although it would be technically pretty if it rolled off this area. It would surprise me if it did. It would be a very pleasant surprise.

All right, here's a chart showing the basics of the framework of what I was saying.





Chart created on QCharts, courtesy eSignal

Am I actually going to see something off this area? It's a nice little tease, but I'm not getting my hopes up.

Very short-term, 93.25-.75 and that could be all the tease has to give.

Otherwise, I'll be watching 92 and 89 areas. My dream is it sets a new LOD...

If this is a tease, that should be it right there.

This 'should' be over now, but let's fantasize. The GZ has some stuff, so let's say 86 is realistic (not that new LOD). But, this is the perfect tease, right to a specific area here, so they should have their trap set right now if that's the game they are playing.

Bouncing right on cue.

CDE got hit a little bit this week.