China Woes Hobble US Stock Manipulators
Asian stocks are getting trounced again, making it far more difficult for DaBoyz to manipulate US markets in the way they’d like. The E-mini S&Ps have been down the equivalent of 300 Dow points thus far, but it’s not clear whether sellers are sufficiently winded to set up the obligatory short squeeze ahead of Tuesday’s opening. I wouldn’t presume to tell you how to trade so volatile a market by-the-numbers, but if the selloff continues, levels p, p2 and D in the accompanying chart should be used to benchmark the move. As always, the decisive penetration of one would telegraph more downside to the next. There are three possible ‘mechanical’ shorts along the way, but I am recommending this tactic only for subscribers who need no further instruction.
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