DaBoyz demonstrated with last week’s unrelenting short squeeze that they mean business. It was made possible by nervous anticipation of a global war starting in the Middle East. Although this remains an all-too-real possibility, it is exactly the kind of thing Wall Street loves to ignore: a potentially world-ending wall of worry that features a billowing mushroom cloud. For purposes of predicting the extent of this wack-o rally, I see no Hidden Pivot patterns as useful as the round number 4500. That’s where this hoax is headed, and because it lies within less than two points of a voodoo number, we might look forward to getting short up there. Trading with the trend in the meantime is bound to be challenging, since everyone else will be trying to do it, too. I am not yet ready to consider the possibility of new all-time highs, but 4500 can serve for the time being as a minimum upside target.
ESZ23 – Dec E-Mini S&Ps (Last:4376.00)
