Strangle Nirvana

I’m still not entirely sure what I want to do with this structure. And since there was uncertainty at the end of last week, I rolled half the puts I took at the highs that immediately went in my favor and took a few calls. Since we gapped up, I ditched those and am sitting on the puts still.

I see some structure developing that I originally only briefly floated in the Discord over the weekend, but it’s looking perhaps a little more possible (but I still am not entirely sure).

We may be in a B-Wave triangle (of the pink degree). If so, we may still have lower to go for a trend line strike, followed by another rally back to the 4000 area. I am not sure about this, as there is also a falling broadening pattern perhaps developing in there as well:


But, if we do head down to the lower trend line, we will be re-entering “technical” bear market territory, and that may induce some algo-generated supply, and it’s possible that we then rally again. Not sure. But, if we do fall there, I will then dump the puts I have, the other leg of a de-facto strangle. And at that point I will try to reassess the situation.

Note: When articles are first posted, most of them are made available only to my Patreon supporters (I do try to publish some public posts on occasion). Over time (usually after a period of a few weeks or so), I make all of the work public. To gain access to my work when it is produced, please consider becoming a patron. More information may be found on my About page and on my Patreon page. In a nutshell, patrons of any denomination (you get to pick the amount) will be able to read my weekend analyses, Tier 1 members ($20/mo.) get access to all of the articles I write, and Tier 2 members ($35/mo.) get access to those, plus counts on other instruments and my Discord chatroom.

One thought on “Strangle Nirvana”

Leave a Reply

Your email address will not be published. Required fields are marked *