Interesting trading week, although I still am down overall. Top of mind is “Where to” for equities from here? Friday was “Quadruple Witching” with quarterly expiration of June equity futures and various option series potentially being responsible for the unusually large range in equities. However, I don’t believe a long term top has been printed yet. Indeed, NQ has regained leadership versus ES recently, suggesting a healthy underlying appetite for risk. Traffic patterns in stores, our national parks, flight bookings, and on the road are very strong, perhaps related to long term pent-up demand caused by the Corona virus lockdown and other restrictions, since lifted. The availability of discretionary items such as electronics and mountain bikes are tight, with backlogs ranging from 6 to 12 months for many such products. Trucking freight (Uncovered loads) has blasted through a previous record by 10% this month and the typical end of quarter push is still yet to be reflected. This is even after considerable industry capacity becoming available in the last few months, attracted by much higher freight rates. $70+ crude should encourage increased capital investment in oil shale projects throughout the US and beyond, benefitting multiple industries. As strong as our economy seems to be, it is being held back capacity restraints, in my estimation. In other words, our current economic boom has legs. Long legs. The Fed’s somewhat “Hawkish” jawboning aside, Bond prices are near 20 week highs, which in context seems to show the Fed is maintaining an accommodative monetary policy out of an abundance of caution, while term structure of US debt suggests actual interest rate increases will not start until next year. The continued availability of cheap money combined with strong demand for most goods and services should encourage increased business investment and hiring efforts going forward. ES is in reversion to mean territory on the 30 minute chart and s actually greater than 10 ATR from it’s “Mean”, a fairly rare occurrence for a broad based index. Personally, I will be looking to buy ES on evidence the current downward momentum has subsided for a two to three day swing trade next week. Equity indexes are currently about 4 to 5 ATR from their average prices on the monthly, which if ES did actually experience a major correction, mean we could see 3700 to 3750 and still be considered in bullish territory. I just don’t think this scenario is very likely now, even though I have seen some signs of distribution. In other words, BTFD is probably still the best way to go.