Wednesday, January 22, 2014

Compression 1-22-14

After yesterday's V shape bounce, ES took a breath to consolidate. Both side were not motivated to move it out of a small range of the upper VP. It ended up with a 6.75 point range, a neutral inside day. Someone said it was a fourth smallest range since 2009. A compression usually lead to explosion one way or another.

On commodity front, CL had a 1%+ day, marching crossed Fib 50RT and 50 SMA. Fib 61.8% is right at 97.20 level. I exited my 82 put with over 90% of profit squeezed out. I have only the $90 put left open. Grains had a on hold pattern. Soybean looks like a bear flag. It may not be done with selling yet.

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