Leap of Faith

We reached our initial target of 1444 [from Sep 18] yesterday, a nice 30-pt gain since shorting SPX at 1474 on Sep 14.  Those who played the bumps as we saw them worked a little harder, but were rewarded with more than twice the return — hauling in about 75 points for a pretty cool 5.2%.

From yesterday morning’s post:

I thought we would get a bounce there and come back to tag my 1439 target Monday, but the market looks like it just can’t wait. The e-minis are down a few points, and that should drag SPX down to that 1439 level on the opening bell.

We closed our shorts and went long at 1444, which was premature.  Fortunately, we had a very tight stop in at 1443, so lost only one point (aside from the opportunity loss.)  I’ll be looking to go long again this morning after the dust settles — probably around 1438-1439.  But, we’ll see what kind of carry-over we get from yesterday.

Here’s what I’m looking at this morning:

UPDATE:  9:40 AM

There are a few harmonic targets just below the 1439.42 level — the 2.24 at 1438.20 and the .500 at 1435.54.  Looking for it to settle before jumping in.

More in a few.

UPDATE:  9:50 AM

That should just about do it.  I’ll take a stab at going long here at 1437, with tight stops at 1435.  Picked up a couple SPY Sep 144 calls at .50 to play the bounce just for grins.

UPDATE:  10:15 AM

There’s a channel within the big channel that’s easier to see without 20 Fib grids cluttering up the chart.  This morning’s low comes at a key intersection I’ve been watching.



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