One-Third Of Insanity

Have you had enough? I sure have. Four solid months of this nonsensical, on-again, off-again war. I won’t delve into my own views as to the purpose of this war, or who is profiting, or who is manipulating the news, because it wouldn’t matter to any of us anyway. The simple fact is that, just as I predicted (and many others did as well), TACO is upon us once again, as we “pause” for the umpteenth time and send crude oil crashing lower.

It won’t last. If you’ve got a lick of sense to you, you know it won’t last. The bombs will be flying again in no time, and we’ll be back to the same old story as last week. For the moment, however, those who lined their accounts with short-term call options on equities are ready to cash in before they turn the war machine on again, and the /ES vaulted higher yesterday and hasn’t looked back.

So powerful is this on-again/off-again (or the PG-13 rated tit-for-tat war, as the media likes to call it these days) that it Ctrl-Z’d the support failure from late last week (red arrow) with the “gosh, we’ve won again!” party over the weekend (green arrow). Never has surrendering been so profitable.

I keep reminding myself to keep in mind CONTEXT and GRANULARITY. Looking at the /ES for the past few months, the chart still looks potentially terrific, in spite of the recent unpleasantness.

The market is open now, and out of 43 positions, I got stopped out of……….two. Suffice it to say, I’m not budging.