Gap Up

It’s pretty simple.  The US market is about to gap up to start the year, and it will be right at short-term resistance if/as it does so.

S&P 500 Futures…


So the question is, do you chase this potential suck in or do you wait it out?  I choose Thing 2, as I am only short XLF (against several remaining longs) and also long Treasury bonds (which are about to get zonked).

I am at the moment, built to be balanced.  I’ll change that if the market instructs that Trump Mania part 2 is about to foment.  But the chart above does not inspire confidence in that outcome… yet.  If the inauguration brings about a new round of animal spirits, I plan to be a nimble trader from the bull side.  The S&P 500 target is after all, 2410.  But then I’d be prepared to get actively bearish within the next few months.

Subscribe to NFTRH Premium for your 30-45 page weekly report, interim updates and NFTRH+ chart and trade ideas or the free eLetter for an introduction to our work. Or simply keep up to date with plenty of public content at and Also, you can follow via Twitter @BiiwiiNFTRH, StockTwits or RSS.