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As you know I don’t live in the United States anymore. But during my twenty years in California I remember Memorial Day weekend as a great opportunity for people all over the nation to jump into their cars, RVs and motor homes to take advantage of the three-day weekend. Many have planned ahead for months to enjoy this weekend and I recall camp-outs, parties, fun at the lake, strolls at the beaches or just a little R&R. As Americans enjoy a lot less vacation days than in more socialist Europe this is completely understandable. And hence most folks make sure to plan some of their vacation days around the big ones – either Memorial Day, Thanksgiving Day, or of course [...]
Yes, the tape sucks today but not all is lost as we are inching toward some setups to sink our rodent teeth into. Let’s first review the situation on the equities side and then move over to commodities and FX as usual:
First our volume profile chart – and given the spasmodic signal on the Zero today there’s little surprise that we pushed into that old volume hole and then bounced right back. A touch of 1330 is a great short opportunity with a stop only a few ticks away. As soon as we breach above 1330 volume is picking up quite a bit so I would have no compunction about flipping this sucker.
But wait – there is more! Right near [...]
I am happy to report that ole’ bucky has finally done it – we are now officially at our bullish P&F price objective. If you wonder why I am so elated – well as you probably know I get paid in Dollars, but I also live in Spain and a weak EUR puts some extra purchasing power in my pocket. And in general I have a hard time accepting an ever degrading reserve currency. We’ve had plenty of that in the past few years. Not that any of the ‘competing’ currencies, except maybe the CHF has been exhibiting much strength either. Rather what we are seeing is a race to the bottom and the only remaining measuring stick worth anything are precious [...]
Unfortunately I don’t see any setups of note right now. As I don’t want to let you hanging in limbo let’s turn our attention to an increasingly ugly looking situation over on the equities side.
The spoos sliced through that volume hole at 1330 like a hot knife through butter on the way down. And it seems that tables have turned now as it posed sufficient resistance to bring us back to the 1300 mark. It does not take much imagination to see that a breach of 1290.6 could launch an avalanche.
What’s even worse is that Mr. VIX has now officially gone spasmodic – we just saw a 25% delta in IV within two trading sessions. Even at [...]
