Mixed Signals / Taking Profits

Good Morning:

— We sold 25% of our current position yesterday at 4930.25 as the market closed in on the Weekly and January Expected Move Highs set by the options market. These levels accurately cap prices most of the time for the referenced period. Accordingly, the January Expected Move High could be an obstacle to any more January gains past 4933.25. If the high is exceeded, January’s price is likely to close at or below the level by the end of the month.

— But we can count on the market to sputter around to help everyone doubt their convictions before it takes another spill like yesterday. There are many divergences and disconnected price relationships to support a dip, not to mention some pressure on interest rates and commodity prices (inflationary)

— And all the Black Swans still circle us as global tensions continue to rise.

— Without some positive light, we will continue to sell intraday rallies. And we have raised stops on our 75% remaining position to 4895.25.

A.F. Thornton