Stock Symbol Salad

Let’s face it – you haven’t been watching your diet over the holidays and those jeans are starting to get a bit tight around the belt line. Don’t despair – Dr. Mole is here to help – we’re going to get that muffin top back into shape for spring in no time. In addition to a rigorous tea bag lifting routine I am also prescribing you a nutritious diet starting with today’s stock symbol salad. Go ahead – dig in!

Let’s start with the E-Mini which has been scaring the children a little in the past two days. However most notably it dropped all the way to its daily NLSL and then bounced back. Great first test and that means we should remain long until we see a breach of 1,491.25. Easy peasy lemon squeezy – but no sugar on top, alright?

CCJ – very interesting configuration. It’s been bumping into resistance near 22 in the past two weeks plus there was a quick visit of the 25-hour which snapped right back. I would love to be long on a breach of that diagonal.

CVX – Chevron near its daily NLSL plus there’s activity near its 100-hour SMA. Great inflection point.

DRYS – our long near that neckline got stopped out but now we have a bit more context. I am currently still in neutral but will shift into first gear if we get another breach of the neckline. And back into reverse if that 100-day SMA is being taken out.
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ICE – great inside day setup near daily resistance (i.e. the upper 100-hour BB line). I would take either breach.

Maco-donardo (that never gets old) – also inside day near possible upside resistance (less pronounced).

PFE – inside day breach in progress! Currently short with a stop above today’s highs.

Exxon Mobil – descending into possible support – two SMAs ought to present somewhat of a hurdle, right? I’m long with a stop below the white line. Short on a breach of the 25-day SMA.



Thursday Morning Briefing

Welcome to our morning briefing. Here we are reviewing short term setups ahead of the NYSE opening bell. If you are a scalper or swing trader then these setups may be of interest to you. As usual keep in mind that these are short term setups although they could be used as early entries for more longer term positions.

Excellent setups this morning. The E-Mini is now below both its 100-hour and 25-hour SMA. After some sideways gyrations overnight the latter is now approaching rapidly while an hourly NLBL looms above. Very interesting configuration and I would be long on a breach of resistance – until then I’ll be short.

The greenback is bumping its head against its 25-hour plus there’s a NLBL in the way which thus far has been holding up nicely. I’m also short here right now with a stop above the NLBL – willing to flip if she breaches both.

Bonds – here’s the 30-year which is heading into its 100-hour. Great inflection point and setup but not as nice as the one on the ZN which has better context (see below)…

I have quite a few more goodies this morning – please step into my lair:
More charts and non-biased commentary below for anyone donning a secret decoder ring. If you are interested in becoming a Gold member then don’t waste time and sign up here. And if you are a Zero or Geronimo subscriber it includes access to all Gold posts, so you actually get double the bang for your buck.

The reason why I like the setup on the 10-year better is that it’s already above the 100-hour and that there’s a NLSL below in addition to two short term SMAs. I am long here with a stop below.

AUD/JPY made it up to its 100-hour – long on continuation, short on failure.

CAD/JPY – back at its 25-hour. Could be a last kiss goodbye. Long is obviously the easier trade – I’m still on the fence here.

EUR/USD at its lower Bollinger which is rather narrow. Long right now with a stop below 1.354.

USD/CHF at the 25-hour – I think the bears have the upper hand here still, but let’s see. Long on a breach – short if she drops back below.

Silver just failed an hourly NLBL – a bit unexpected as it looked like it was ready to rock and roll. Short here with a stop above the NLBL (which I won’t move – it’s a very speculative setup due to 25-hour being hard on the rise).

Corn back at its 25-hour – good inflection point – you know what to do. If she fails then my target would be the lower 25-hour Bollinger (based on prior occurrences).




Once again this afternoon at 2:15pm the high priests of finance will descend from their retreat above the clouds to share their visions of the future with us lowly disciples. The common expectation on the street is that the crackpipe of quantitative easing will most likely continue to make rounds in order to keep everyone in a frisky mood for buying equities.

There are good things about FOMC days – according to this paper there’s a real edge in getting positioned ahead of the announcement:

This chart plots the average cumulative one-minute return on the S&P500 index (SPX) over a three day window. The solid black line shows the average cumulative return on the SPX from 9:30 a.m. EST on the days before scheduled FOMC announcements until 4:00 p.m. on days after scheduled FOMC announcements. The dashed black line shows the cumulative return on the SPX over all other three day windows. The gray shaded areas denote the pointwise 95% con dence bands around the two means, respectively. The sample period is from September 1994 through March 2011. The dashed vertical red line is set at 2:15 p.m. EST, the time when FOMC announcements were typically released during that period.

Be this as it may – it’s not my style but it’s still worth noting that the bias ahead of Fed days is heavily to the upside. Not that anyone in their right mind would bother being short ahead of the announcement.

Meanwhile the Dollar has set up permanent residence over at the woodshed. The only pertinent positive news is that our short entry thus far has been working like a charm. Of course anything can happen during FOMC days and I recommend you watch that 25-hour SMA when emotions are starting to run high. Fortunately we got a great entry so if you keep your original stop above the daily NLSL you should be in decent shape.

Our Soybeans trade is running high and may be getting ready for taking partial profits. My final target is the dropping 100-day SMA – once we touch that I’ll be out and wait for new instructions.

Corn – you subs hopefully got that memo yesterday and if you did then you should be long right now with a stop below the 100-day SMA.

Wrapping things up with silver – good long there off the 25-hour and 25-day. I’m taking partial profits as there’s double resistance looming above. Let’s see if she can pop above that NLBL and that 100-day and then we’ll talk.

As you know I hate FOMC days. No new setups for today as I don’t want you guys to get chased all over the place. I already saw some monkey business over in bond futures this morning. Tomorrow is another (and better) day.

It’s not too late – learn how to consistently bank coin without news, drama, and all the misinformation. If you are interested in becoming a subscriber then don’t waste time and sign up here. The Zero indicator service also offers access to all Gold posts, so you actually get double the bang for your buck.


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