Sell set up after the spike yesterday afternoon has not done what it should have, so as written earlier I'm out. The move should occur within 6-8 time frames (in this case hours), and when the expected action does not materialise you know something is not right. At this point in time the measure (bars below the Dax chart) has fallen from extreme levels reached yesterday, to more neutral ones now. That is not to say that a steep fall could not happen, just that the edge is not there any longer, and the signal strength has deteriorated to the point that the risk/reward profile of the trade does not warrant pulling the trigger.
I'm short via Sep puts, because I think the wall of worry the mkt has climbed is about run out of space, so cannot bring myself to buy a strategic long term position at these levels, the type of economic data points being released are still pretty bad. I am cognisant that stock market functions as a discounting machine, but methinks they are blind to what awaits us going forward. The debt mountain is still there.
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