(8-31-14) Expect Final Round of Short Covering & Bag Holder Buying in the Spoos
With the end of August now here, technicals remain good until the middle of September. With 2,000 having been broken in several efforts, we would expect 2,000 to now begin to hold in the SPX.
This will prompt the final round of short covering and Unwashed buying a/k/a Future Bag Holders of America Club, as the expected top should be reached in first half of September creating a fresh shorting opportunity. We continue to trade the Sep. Spoos from the long side on 4-5 handle scalps and will continue to do so now.
Continue to trade the Sep. Long Bonds on the long side. We again were buyers in Friday’s session on our standing orders at 141.15 and sellers at 141.23. We sold them away at 141.24, taking ¼ out on the way back down as end of week longs came out late session. However we continue to like the Bonds on the long side.
Oil – also we think very shortable at current levels. Oil had been talked out on rallies to 95.