Down, But Not Out

A topping out process, by it's very nature, can always take longer than expected especially if central bankers are determined to throw good money after bad. Disappointing though this last weeks rally was, and our corresponding stop order being filled, it has created a strong overbought condition by fulfilling a stage 4 weekly break which has in the past created a ceiling price before a multi-stage correction. We are therefore suggesting this week to re-enter our short position with a max of 12 contracts at any price above 1437.0. We will put a stop in @ 1456, and a partial target price of 1395 where will take profits on half our position.