Our entry into the Russell short trade was definitely off – but even so, we exited today at $1k profits (from 1076 to 1066TF)!
Additionally, all other trade recommendations for our subscribers are in the green after sticking through a day or two of temporary pain. Glad we stuck it out.
I’ve been traveling on and off planes – so wasn’t able to update yesterday. But our post from last Friday Friday, March 4, 2016 – S&P500 Possible Top At 2007.5 E-mini’s (ES)? called a potential local top at 2007.5ES — listing multiple reasons why. I understand I could easily have been wrong – but if so, probably not by much.
While we got close the next day at 2005 ES with the Russell making higher highs at 1095 – the 2007.5 ES still held as a local top. We were a little early with our bearish trades but it paid off with today’s drop. I alerted several opportunities to cash some chips in just in case. How much or little of a retrace we get for how long is the question.
Yes! We called the local top at 2007.5 ES last Friday on March 4. That B-wave did get awefullyclose and the drop so far isn’t exactly strong — so I don’t think we will be going straight for 1800. Of course, I could be wrong.
The Russell topped out at 1095 — the strength of that blowout 5th wave was stronger than I expected — and on a microtime frame
Notice that even that last 5th wave between 4pm – 6pm on the left side of the 5min Russell chart above potentially breaks down into another 5 waves right into 6pm.
6pm was the top at Russell at 1095. I had been seeing potential resistance starting from 1050-1065 — but clearly it went way above that, especially with that last blowoff top. But when it falls, it takes away all those gains and more.
The question now is how the action plays out overnight to tell us whether there’s further downside, or we rally back towards the highs.
And of course, I wanted to share some motivational quotes for traders. If you have an instagram account, follow us @SilverSurferTrades