Another Picture perfect short term rally setup..

Couple of days ago, we had a picture perfect setup and we have the same today for another short term rally. This rally can pull around 100 points on SPX. But as usual we take some profits on the way and then have stops to protect ourselves.

 For people who follow Larry Connors RSI system, there is that 2 day RSI also in the extreme level.

Ticks started ringing the bells too.. when we got the breakout above that hourly doji..

Remain in Cash in 401k and IRA acocunt. Let the volatility subside before you commit long term capital.

Happy Hunting.. Silver and Oil.

Let this setup happen.....

You can trade this in following ways

1) Buy a PUT option 

2) Sell a Put Spread - Sell deep in the Money puts and buy at the money PUT

3) Sell a Call spread. - Sell Deep in the money call and buy a at the money Call

4) Short the Shares naked or with a call.

Other ways to trade this would be with other brothers and sisters of Silver commodity which are SLV, EXK, ZSL etc.

This is setting up for 1-2-3 Wave correction. The 1st wave happened and 2nd Wave will have this ETF bounce back to up to 50 day MA and then fail over there. So wait patiently to shoot this point blank..

There might be a similar setup in Crude Oil.