After the support line held. It was off to the races making a new high Thursday. Then Friday blasting even higher. What I believe is happening is many hedge fund guys became real cautious when the politicians in Washington had their showdown. As a result they now need to get in as fast as possible. So here we are with new highs. This week I am looking for this to pull back. I have a handful of calls I will be getting into as the market pulls back into the 1710-1725 area. Let’s see how it goes. Happy trading.

I am not posting a new chart even though it shows what I thought would happen. The bottom up trend line held. This means that I am still bullish. Thought for a bit last week that it was going to reverse. The politicians that we elected almost messed it up. These guys and gals are really amazing. Our Government brings in around 3 trillion in Taxes per year and we owe around 17 trillion. One of the house representatives out of Oklahoma put it well today. This is like a married couple fighting over their finances when they are way in debt. I have a solution. You and I need to start to live as close to debt free as possible. Change the individual and you will change the country.

Well we are still flirting with this support area. Last post I talked about the 1670-1680 area. I see this area holding. I also got the politicians wrong. I thought they would keep the government open. Now the battle is over the debt. Going to be interesting to see how this ends. I am still long term bullish and short term bearish. I think this area will hold and start a climb from the 1665 line I have drawn. Went to Vegas this weekend and met some of my trading friends. What a great time with a wonderful group of people. I also met Oscar Carboni. He is a riot. I look forward to learning more about him. Happy Trading!!

This is still a pull back. We have some politico stuff holding up the market. Will the government continue financing itself. YES. I believe traders were mostly on the sidelines this week. I feel they are watching the Senate, House, President circus. More important they are waiting to see if the fed eases. All of this means that the market is in a waiting period. Volatility was real weak this week. As far as the chart goes I am bullish and looking for a turn here or just below at the 1667 area. Last week I said i felt the 1688 area would hold. Looking at it now I feel the area is 1670-1680. This is the first area of support. I see it trading between 1680-1705 for a bit. If this area breaks down we should see it hold at 1650. Let’s see how it goes. Short term I am bearish. Mid and Long term I am bullish. Happy Trading!!

I was in the mountains chasing Elk last week. I managed to miss an excellent week to trade. The FOMC meeting would have been a fun trade with binaries… Next trade. There are plenty of opportunities. So I am keeping my bullish posture for swing and position trades. The fed not tapering is huge! As long as this continues we will be long. I was a little  surprised by the Summers news. The boys and girls in Washington are definitely entertaining. Make everything a circus so they get themselves in front of the camera more often. It is all about marketing so they can sell themselves as access to the highest bidder. Let us see what this week brings. I believe the 1688 will hold on the ES December futures. Then it will make another run at the high. We shall see.

This is getting interesting. The COT report is showing the big guys below the 0 line http://tinyurl.com/k76gqyc. This is the first time since December 2012 that the Large Spec are below. See below my weekly chart of the ES. Bears see this area as an opportunity to short possibly due to the Resistance from 1688.75-1705. Bulls want to take this above 1705. I am long the market with a real fast finger on the trigger. Looking at a daily chart I am expecting a pull back to 1667. If this does not hold then I will start looking for the next move. Keep in mind this market is being held up on thin air (Fed Hot Air Balloon). I believe the COT is telling us that the big guys believe taper is coming so they are starting to think short. Listen for the language coming from the fed. Personally I think they will stay quiet unless the market starts to tank. Then they will ease taper talk. If the market gets moving above 1705 then they are going to bring in more language about taper.