S&P 500 cash market analysis and outlook

the line of least resistance is upward and this pullback is going to present us with a new menu with new low risk setups, manage open positions and be patient with initiating new ones, and for you that want to short now, plain and simple don't, if the market is going to tank there is going to be plenty of time to get on board, read the post below and don't predict, but follow your proven game plan

“Those who have knowledge, don’t predict. Those who predict, don’t have knowledge.”

~Lao Tzu

Are you prepared ?

"Being prepared, on a few occasions in a lifetime, to act promptly in scale in doing some simple and logical thing will often dramatically improve the financial results of that lifetime. A few major opportunities, clearly recognisable as such, will usually come to one who continuously searches and waits, with a curious mind, loving diagnosis involving multiple variables. And then all that is required is a willingness to bet heavily when the odds are extremely favourable, using resources available as a result of prudence and patience in the past."

- Charlie Munger

UNG - b - now

above weekly view and below daily charts

higher low, buyable gap ( above 50 sma ), and now a breakout through last swing high, trend changes at this point on daily time frame, now looking for follow through and for the price to accelerate higher, and then to have an orderly pullback


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“If you realize that all things change, there is nothing you will try to hold on to. If you are not afraid of dying, there is nothing you cannot achieve.”

~ Lao Tzu

as long as we're hitting new highs upward trend continues

at this time the trend is up and we don't fight the trend, if you have some shorts on keep the stops tight

What to do now? Wait for a pullback, if we get it, to initiate new long positions and wait for new shorts for now as it doesn't pay to fight the trend.

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sitting on your hands

waiting looks as the best action right now, hopefully next several days of price action will resolve situation and give us a new trend and new opportunities, make sure you wait for follow through ~ read below post, the art of useful waiting

the art of useful waiting

"In chess we have the obligation to move; there is no option to skip a turn if you can't identify a direction that suits you. One of the great challenges of the game is how to make progress when there are no obvious moves, when action is required, not reaction. The great Polish chess master and wit Tartakower half-joking called this the "nothing to do" phase of the game. In reality, it is here that we find what separates pretenders from contenders.

"The obligation to move can be a burden to a player without strategic vision. Unable to form a plan when there isn't an immediate crisis, he is likely to try to precipitate a crisis himself and usually ends up damaging his own position. We learned from Petrosian that vigilant inaction is a viable strategy in chess, but the art of useful waiting takes consummate skill. What exactly do you do when there is nothing to do?

"We call these phases "positional play" because our goal is to impose our position. You must avoid creating weaknesses, find small ways to improve your pieces, and think small -- but never stop thinking. One tends to get lazy in quiet positions, which is why positional masters such as Karpov and Petrosian were so deadly. They were always alert and were happy to go long stretches without any real action on the board if it meant gaining a tiny advantage, and then another. Eventually their opponents would find themselves without any good moves at all, as if they were standing on quicksand.

In life there is no such obligation to move. If you can't find a useful plan, you can watch television, stick with business as usual, and believe that no news is good news. Human beings are brilliantly creative at finding ways to pass time in nonconstructive ways. At these times, a true strategist shines by finding the means to make progress, to strengthen his position and prepare for the inevitable conflict. And conflict, we cannot forget, is inevitable.

- Garry Kasparov, How Life Imitates Chess

Not a day goes by that a trader doesn't have to choose, between what he wants and what he's afraid to lose.