An ugly day for KCH. Once below the 13700-13690 level, this market never really looked back and selling accelerated below 13600. Heavy volume exchanged hands between 13400-13440 much of the day before the last wave of selling pused this market to new intraday lows (13335). Settlement right near the lows for the day. 13305 lows back in November during the Dec OE, next big downside level.
HK -190/-185. RCH -13 (1333).
While my sentiment was slight bearish, did not expect the speed in which we saw this market break down. Following the intial low down around 13500, KCH managed to climb back to 13600 before a very aggressive wave of selling pushed the market to new lows. Z, who claims not to be a market timer, had been posting about the importance of 13600 and his overall bearish feeling on this market. Well done Z, keep the forum posted on your thoughts. Nagual, well done, mentioned the 13400/13300 as possible target.
While I missed out on short futures for much of today's move, I was able to capture some of this move via my option position.
For tomorrow , will watch Fib retracements on upside for possible short entries (13550, 13620, 13685 - 38, 50, 62%). FWIW, just below the 38% is Thursday pivot 13530.
It has been quite awhile since we have seen Volume of this magnitude in KC, and for this reason felt it worthwhile for a summary of todays action! Hope it helps.
gt.