9:10 am PST. Oil is really making some gains today. I wonder if USO will now rally up to $12+ over the coming months. It looks bullish to me. Either it could do one more wave down to $9 or that is it on the downside….worth watching.

9:03 am PST. The high-yield corporate bond etf, JNK, saw a 590,065 share print at 36.76. JNK tracks HYG and SPY. That is interesting for what it says about what direction the market makers have bias towards. Bullish above, bearish below.

8:46 am pst. The Euro etf, FXE, gapped down this morning and continues to look bearish.

1:05 pm PST. SPY chopped around during the morning session and found its footing rallying almost to my $236 target. I closed out AAPl calls for 25%, SPY calls for 25% and GDX puts for 60%. But my AAPL and SPY calls eventually more than doubled during the rally. Live and learn. I think we could still see 236 tomorrow on SPY and then we will see how it does there. Could doji and then do a range-bound correction.

11:17 am PST. The Euro is done on the upside. We finally got that spike higher that I had been looking for nearly a week and it is done. The Euro is now going to sub $100 in a month or two.  Happy skiing!

8:12 am PST. Bullish now.

7:36 am PST. It has been a choppy morning which could continue for the rest of the day.

The Gap between the rich and poor are widest in those societies where wealth depends on access to government, where government decides who can access wealth by force, by taking wealth from one and giving it to another. I wonder what Milton Friedman would say about the state of the world today.

1:06 pm PST. I learned a lot from last Friday and today. Very interesting gap down this morning after Friday’s bounce. Trump pulling the bill really distorted the magnitude of the bounce, but it was just short-term and indeed the indices intended to make a new low in accordance with the pattern which is where I thought it would go, but got shaken out by an unexpectedly stronger bounce last Friday into the close. This is something very new and interesting that I learned today: News can distort the price pattern for a short-term but not the general pattern and trend to where prices ultimately intend to go.

Likewise the dollar finally made its spike down today while the EURO finally did its spike higher. They sure did take their sweet time. I think I was early in looking for it. The currency markets move a little more slowly than the indices and this is another new thing that I learned.  🙂 They certainly have their own personalities. I think UUP, though, still looks like another possible new low tomorrow on positive divergence, and that is probably it for the interim. I am looking for 25.45 tomorrow.

I really like how the indices recovered today filling the gap. I think there could be some chop in the morning tomorrow as the dollar makes its final low, and then SPY could rally to 236 over the next week or so.

FCX broke down from that triangle as USO also sold off this morning.

Quants run wall street now, but I think it does not matter if you are a quant. Are quants the new Wall Street Scam?  Well, maybe they are useful for high frequency trading. Human emotion still runs the market. The price patterns have not changed, which means it runs on human emotion – greed and fear – regardless of the quants.

I will probably reduce my intraday posting that I have done so I can focus more on my trading. While it helps to clarify my thoughts, and I like having readers, I find posting intraday has become somewhat distracting to do my trading at the same time. However, I want to put these charts up for Monday so I can focus on trading tomorrow instead of writing. 🙂

Midcaps held the March 22 low and made a higher low on Friday, which positively diverges from the Dow performance. Similarly XLF also made a higher low. The Dow eventually went to my 20,500 target, landing on 20,529.67, which I had suspected might occur all along, but then posted a possible lower target of 20,222 which I think distracted my focus a bit, perhaps – not sure – in exiting the remainder of my SPY puts which I had a really nice profit on and then turned into a small loss on the bounce, and then eventually I stopped out of. I really hate turning profits into losses. I suspect last Friday for the Dow was the low of this corrective wave.