Hi all,

Recap ….

Intraday wise …. I banked 13.50 points in spoos today.

I have 1 short in Ftse & 18 shorts in spoos and 2 swing positions open.

Onto today …

KP
None in play.

KTB

We have a KTB2 triggered at close on 01/10/2013.
IT IS NOW NEGATED AFTER DAY1.

KTS

We have a KTS triggered at close on 11/10/2013.
It is now negated after DAY1.

We have a KTS5 triggered at close on 08/10/2013.
It is now negated after DAY2.

SYSTEM BDIP
We have a BDIP triggered at close on 14/10/2013.
TODAY IS DAY4.

DAY1… We got a low of -14.75.
DAY2… We got a low of -1.00.
DAY3… We got a low of -7.50.
DAY4…

We have a BDIP triggered at close on 10/10/2013.
It is now negated after DAY4.

DAY1… We got a low of -12.00.
DAY2… We got a low of -18.25.
DAY3… We got a low of -14.75.
DAY4… We got a low of -1.00.

DDUD
We have a DDUD season triggered at close on 11/07/2013.
It is now negated after DAY2.

SYSTEMS TRIGGERED

ESL1 NEXT DAY
GOOD CHANCE OF A -3

ESHA

ESL2
USUALLY GIVES -4/-7

ES8A
SHOULD GET+3 AND A -3. DOES NOT ALWAYS CLOSE AT LOWS

ES92
USUALLY TREND ONE WAY OR ANOTHER AND CLOSE NEAR HIGHS OR LOWS

SYSTEM 131 (KHC-3)
SHOULD GET A -3/-4

SYSTEM SPXL1
VERY ERRATIC SYSTEM IN TERMS OF HIGH/LOW/CLOSE. USUALLY IS A DOJI DAY WITHIN +5 / -5. TRADING > +5 USUALLY CLOSES POSITIVE, TRADING < -5 CLOSES NEGATIVE. THAT’S WHEN IT BECOMES A TRENDING SYSTEM

Spoos closed at 1727.75  (basis Dec)

K+3 = 1730.75

K -3 = 1724.75

Conclusion

We have 1 KHC-3 SYSTEMS in play.

We also have a BDIP DAY4 in play.

The good news is that I banked 13.50 points yesterday but the bad news is I got caught shorting the levels I would normally have made a profit and flattened on.

I have a 1715.50 and 1728.25 short from yesterday.

I decided to keep them despite the TREND UP basis TRIN yesterday and a possible MS SHORT that never materialised.

So where now?

Looking at SPX we are at the top of a TREND LINE that is a very large ascending wedge. Another top line would be 1745 SPX. Above that is a pure breakout realistically to 1770/1800 SPX and that may constitute the XMAS rally.

For now it has based and the only exception to this going to 1770/1800 SPX is if this is a final thrust. In any case I cannot see that with TAPERING TALKS off and the can kicked down the road.

MS wise can trigger but that will just be a very short term signal.

The next KTS is due, but again on its own without a BDIP combo, it can just be intraday dips and then SU all day.

TRIN yesterday was very good for bears but fell off at close. Need it over 1 again today ideally to start to build a bearish case.

Although this may appear overbought, in comparison to MAD MODE’s in recent QE years, its no way near overbought for a CIT.

TREND UP remains

Resistance is at 1733/5. ABove that madness continues.

Support is at 1725 and then 1722. Below 1720 it can fall

Good luck

TREND UP remains.

Next signal from MS will be a short and from KT with be a KTS

However its back to MAD MODE QE BULL. SO that means all dips are bought.

We have to continue to assume that until supports get broken. That is THE LEVELS above and the intraday levels I post (SU level, Intraday CIT, support levels etc.)

For now the MAIN supports are much lower which means TREND UP will remain on normal dips.

However how high will it go first and where to short for it?

THE LEVELS Resistance is at 1733/5. ABove that madness continues. Support is at 1725 and then 1722. Below 1720 it can fall Good luck

We just hit 1734.75, I was so tempted and nearly shorted.

When it gets into QE MAD MODE, shorting can be so futile. I will wait until near open

Limits in to close for 5 points basis gap fill.

Closed 1734 short at 1731 for 3 points.