We lightened up or got out of most of our positions today.

First they jammed a lot of people today during a very thin time of day after London’s close. Many weak market participants were run out of their long stock positions with forced liquidation accompanied by margin selling in the Metals. I am still bearish equities but sometimes it pays to lighten up. A rally from here would not be undeserved. Second, equity indices expire this week making for some difficult price action ( markets can be very hard to trade).

There is a huge end game setting up for the end of the qtr. ( this months close). A close under 1249 in SEP S&P 2192 Nasd ( Sep), 76940 Russell, and 89840 Midcap would signal the start of a more serious down. So yes we lightened up, but the big game is not until month end. The following are a few instruments with similar patterns unfolding: PAAS (30.66), Cat (92.30), DE (81.80), SLW (28.85). Closing under these levels are outside reversal patterns to the downside. Price negative patterns. While XOM, CVX have qtrly double tops.