Scott. I have to be honest I haven’t studied gap theory all that much. But gaps would only fill in periods of relative efficiency and generally over time to the upside given the general creep of asset prices over time. The gaps will almost certain fill at some point in the future through real growth or just Argentinian style inflation. The set up right now is a call for extreme inefficiency and a major repricing as the general market has to change the song. Is it likely? Probably not.

alansi… yes but i usually give it a little room like randy
recommends.. i put a stop at 10.41

https://rightsideofthechart.com/members/scott/activity/270323/

The market is being held together by squeezing shorts. I am convinced that’s why it’s so hard to move lower.

The VIX just tapped its lower trendline. Last chance for a save.

it is beyond the gap now @10.30 and I got stopped out. I am glad I had a tiny position.

all good points but this mkt just seems so resilent
very bizarre

I can’t see that happening without the Fed suddenly lowering interest rates due to a change of heart (i.e. not because something broke within the financial system or economy). The macro data overwhelmingly points to a recession around the corner. Could stocks rip into it? Maybe. Can’t see new highs though. I favor this scenario above. Devastate all shorts and get them out of the pool, get a whole bunch of longs to think the bear market is over, and then pull the rug.

yes, i was thinking new all time highs to set up a real nice long term short opportunity

It would also be a golden short entry at the top gap fill where it intersects with that trendline. Most shorts would be squeezed out if we got up there.

https://rightsideofthechart.com/wp-content/uploads/bpfb/2910_0-93998400-1680797258_59ds5959dsplsko.png