7th Try a Charm?

In the past week, the ES has attempted to break above the 1180 resistance on 6 occasions, this morning makes 7. Each time, it has been rejected. If this were a support line, and it held 7 times, the dip buyers would be eating it up and taking us to the moon. Yet, this is resistance, so it takes time to hold, even if it is just delaying the inevitable, low-volume, melt up towards the next line---1200?

I think it's assumed that we're headed to 1200, 1220, 1250, or 1300. Every day the targets go higher. Could this be a sign of complacency? And, are we complacent enough to see a reversal? I think playing for a reversal is worth a go, especially with a juicy gap up. Short between 1178-1180. Put a tight stop at 1184-1186. Buy to cover at 1153.


















[Update: 10:45am] Guess I was wrong. The hungry hippos cannot be stopped. I guess we should all get our party hats on and prepare for the "1200" banners on CNBC by week end?

[Update: 9:30am 10/22/10] My trade yesterday stopped out. Unfortunate but, there's only so much risk one can take!! The animal forces are back out today, tempting me to try again. Maybe I will. I just can't help but think that there is some dormant waterfall of selling waiting to come out of the hibernation cave?