Hi all,

Recap ….

Intraday wise …. I banked 5 points in spoos today.

I have 1 short in Ftse & 13 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 19/09/13.
It is now negated after DAY8.

SYSTEM BDIP
We have a BDIP triggered at close on 02/10/2013.
TODAY IS DAY1.

DAY1…
DAY2…
DAY3…
DAY4…

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

SYSTEMS TRIGGERED

ESL2 NEXT DAY (KHC-4)
GIVES -4/ -7

ESL3 (KHC-5)
SHOULD GET A GOOD NEGATIVE PRINT . DOES NOT ALWAYS CLOSE AT LOWS.

SYSTEM SPX5D (KHC-3)
USUALLY DO NOT GET MUCH POSITIVE, BUT CAN BE A VERY NEGATIVE PRINT. CAN EXPECT -5,-7,-10.

SYSTEM SPX6A
USUALLY GIVES +3/+5. BUT DOES NOT ALWAYS CLOSE POSITIVE.

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 1683.50 (basis Dec)

K+3 = 1686.50

K -3 = 1680.50

Conclusion

We have 1 KHC-3, 1 KHC-4 & 1 KHC-5 SYSTEMS in play.

We also have a BDIP DAY1 in play.

However as the week goes, its been totally mad with Government shutdown nonsense but the good news is that NFP’s probably will not happen this Friday, so we can cut out that randomiser this week.

So where now?

Now thats a bearish combo.

However please do not marry it. I know, I know on the face of it, it is amazingly bearish but with all this QE pump going on and the inability of the market to crack down even with the US Govt pollux, sadly we cannot bet the farm on it.

Resistance is at 1687.25 /1689.50.  ABove that the rally continues.

Support is at 1673/5. Below that it looks bearish again

Good luck

1698/1700 SPX needs to hold for this to remain bearish.

Below 1680 SPX confirms it as bearish and will most likely lead to a low 166x.x print on SPX

SYSTEMS and BDIP suggests a -5/-7 print tomorrow.

I want to short for that but ideally at the resistance of 1687.25 /1689.50.

I would normally short it here for sure overnight but due to newsflow, I am too worried to do so and never advise anyone to do anything that can affect sleep

So in conclusion it shoudl go down but due to pollux can go up.  Therefore a short will only be a scalp still. If 1698/1700 SPX break up we could rally hard.

We shall monitor it.