Jan 6

More of the same action, slow grinding. Need to a bit cautious here around 1140. The question to ask is if 1120 - 1125was the barrier (50%) retrace why is the market not zooming upwards.

The trading shows grinding action, allowing lots of "them to get in". Typically, once a resistance breaks not many are allowed to get in. For example, look at our pick ACH, each of the moves in the past 3 days, each 5% or more. This is what a hot market should look like.

For this reason we are expecting a shakeout of the longs soon (30-50 SP points). Oil is at the doorstep of 85$ (our long held target) and so is the SP near 1140.

Our trades - closed out ACH, WNR, AB, SCHW positions for decent 10-15% profits.