First, after positing this I'll be opening a MCP long equity (stock, no options) position, I really like the charts, I think it can move on its own fine without the need for extra leverage.
As for the market, when we get in to short squeeze territory, things are different, it's an emotional panic, some signals will get run over.
I find it hard to believe that we don't pullback at least intraday, I think we must, but some of the charts are just getting so strong it kind of almost doesn't matter, it's like missing the forrest for the trees, of course that kind of attitude requires wider stops and thoughtful position sizing/risk management for initial positions, but opportunity seems to be knocking and I imagine this will be a stronger move than anything to the downside we have seen thus far.
Here are some charts.
It seems that earlier negative divergences in the intraday pullback range "seem" to be repairing themselves which would be extraordinary. ES 1 min
ES 5 min, I suspect the strength in longer term charts is causing this.
SPY 1 min
SPY 5 min
Take a look at the Q's for an example...
The QQQ 1 min chart is very strong, it is where all new divergences start, even if there was an earlier intraday negative, this would flow to the next longest timeframe if it is strong enough.
QQQ 2 min seems to be repairing itself as the 1 min chart's strength makes its way to the 2 min
The strength in the 5 min, the first institutional timeframe may be what is making it possible combined with a short squeeze or what the market is trying to make look like a short squeeze initially until it takes hold.
IWM 5 min
The positions I'm mentioning as new positions are ones that are still in a decent area, like MCP long.
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