February 11, 2020 | The Yellow Flag Is Out

I’ve unfurled the yellow flag, since the E-Mini S&Ps topped Tuesday slightly above a 3369.25 rally target I’d been drum-rolling for more than a week. Monday’s price action was both peculiar and deceptive, since the day began with index futures extending an overnight rally with their usual brio. But about an hour into the session they turned south, presumably correcting to recharge for another rally. Your editor took the bait with a buy recommendation that turned into a loser when the bounce sputtered out just shy of a profit target. This is unusual, since nearly all of the tricks we’ve been using to get long have been working perhaps 80% of the time. Not this time, however, and the fact that it did not should temper our enthusiasm for bottom-fishing until we’ve seen a few more abcd patterns play out in both directions.
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Rick Ackerman February 11th, 2020
Posted In: Rick's Picks