Maximum Pleasure – October 21, 2011

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Heading into options expiration, IWM presents a perfect symmetry in total floor selling and buying pressures, totaling 29 on both sides from the maximum pain level of the weekly pivot (69.34). The second clusters are relatively weak on both sides too, suggesting that any breakout of the first resistance or support clusters on Monday morning will most likely be followed by a fast and easy run up to Monthly R2 (77.28) or down to yearly S1 (64.40).

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But such breakouts still need to happen and it is useless to make any blind bets at the present time. Instead of incurring maximum market pain today, I will take most of the day off in search of maximum pleasure. Whatever that means is up to your imagination, but I need such days when I am loaded with cash and becoming bored to death!

Even the GDX robot is conspiring with boredom, switching back to a neutral setup for new entries.
The initial short position was entered yesterday at the open (53.01) and the stop is now at 59.73, just below the 50-day moving average (59.90). GDX would need crazy bullishness to break all the strong floor resistance clusters up to the stop, so all we need to do is holding the position quietly, even if some tentative bounces may develop in the next few days.
Billy

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