S&P 500 Update Part II

As per the post before last (Dec 8th) we are holding a sizeable short position. We came close to being stopped out, however, the flat top saved our bacon. It really does look like resistance is in place. Let's see where we go from here.....

Happy trading traders!

Where next? Robert Prechter of Elliott Wave on Bloomberg / Oscar of Live with Oscar

Two very contrasting opinions from two well respected technical analysts. Ah, the subjectivity of TA....

S&P500 Update

To be clear, we are still short the S&P500 and inttend to remain short for the weeks leading up to Christmas. The market failed at the descending resistance, highlighted on our post on 1st December and short-term indicators are now pointing lower. Both of which underline the quality of the thinking behind this trade.

I received a mail from a flatbook reader recently asking for proof that we take our trades. In response to said reader's email, please see below, a screenshot belonging to a key flatbook contributor. She currently holds one position: an S&P500 short on the back of our call on 1st December.

Wishing you all well this festive period!

Critical juncture for S&P500?

After another brief hiatus, here at the flatbook we are back. Posting for posting's sake is not in our nature and it was our feeling that over the course of November, market conditions yielded very few high probability setups.

Thanksgiving week saw an increase in volatility on light volume as was to be expected. As panic on the back of an allegedly exaggerated Dubai World crisis fades to black, we enter a week headlined by the ECB rate decision on Thursday and US NFP data on Friday, both of which have the potential to founder market gains. Technically we find ourself ensconced on tested descending resistance (see below). Notwithstanding indicators appearing decidedly indecisive, we have executed a sizeable, yet somewheat speculative short position at 1106 with stops above recent highs. Let the flatbook go on the record and say that we expect a healthy pullback into the Christmas period as traders unwind their books and take some chips off the table. Indeed this is a critical juncture for global markets, and our direction over the next couple of weeks may provide insight as to whether we are in a genuine bull market or a bear market rally.

Safe Trading all!