Honestly I think equity market direction is a coin flip this week. The highest probability is a little more downside and then one last rally to fresh highs, but that is very speculative, certainly not betting odds. If you aren’t already short, you don’t have betting odds to get short, and the best thing to do is sit it out until this chopfest resolves (one way or the other).
I promised Mole I’d do a post but I haven’t really got anything to say. I will be posting setups as they appear this week until he gets back.
Stay Safe, this market is brutal right now. To be perfectly clear the highest probability for the first few days of this week is some downside, and the form of that downside will tell us if dip buyers are scared off, or ready to jump in.
The trading range has gone on long enough that complacency has set in. We are at a crucial inflection point and I believe it is likely the market will decide which way it wants to go today. The odds favor the bulls, but a downside break would likely trigger a tradeable move
This is your setup – long with a stop at the lows, or short with a stop at the highs
The 60m chart makes it very clear
If we break to the upside it would be a good idea to grab some profits at the upper bollinger.
Equities are doing their thing and I’ve been entertaining myself otherwise. This morning I proposed two speculative entries, one of which may actually turn into something interesting. Let’s take a look:
The symbols were EUR/USD and EUR/CAD – the former dropped lower (much to my joy – see the DX) and the latter is climbing higher. Now this may just be a one day affair but given the formations on the daily and weekly (2nd and 3rd panel) we could be on to something. Which is why I’m converting this into a daily campaign now.
USD/ZAR – I had my eye on this sucker hoping it would push back into that 10.8 zone – wish granted! I’m now short with a stop above 10.84. No long play if I’m stopped out – that 25-week BB is too close for comfort.
Only one setup for the subs tonight BUT it’s a super juicy one – not to be missed! Please step into my lair:
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