Friday 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.

The E-Mini has been soldering higher overnight and as I’m typing this is already above our IP-L trigger whilst nibbling on that NLBL that still stands in the way. A push above it would trigger a long.

However if you are a sub then you know that I’m already long as I liked the Russell futures quite a bit better. Smaller range on the previous candle, we were already above the NLBL and the push above 1,197.5 triggered my long. FWIW – the bulls are far from being out of the woods just yet. This entire configuration is highly ambivalent and a reversal here still has good odds. I’m sticking with price but am prepared for possible whipsaw. That’s why I’m only playing 1/2R and plan to add the next 1/2 at the 1R interval (if we get there).

More goodies below the fold…


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Cheers,

Divergences

I’m seeing some divergences as we are approaching some daily resistance on the S&P 500. Admittedly this is a very soft edge but let’s explore it as our risk is pretty limited here. First let’s look at what caught my attention this afternoon:

The VIX:VXO ratio basically contrasts the price of the 1-month option chain vs. the strikes near ATM. Divergences in pricing usually are subtle hints that market makers are preparing for a quick shake out. May be nothing but that was a rather steep drop this afternoon. And then there’s this:

Here’s the GBP/JPY, a popular carry trade pair, vs. the spoos. As you can see they usually pretty much move in tandem, or at least have been in recent weeks. Today however we’ve got them dropping – obviously Carney’s announcement to overhaul how his central bank is run threw some jitters into the GBP pairs. Again, could be ignored but let’s look at the spoos now:

As we are pushing higher we are approaching the NLBL at 1869. I would love to see a close right below which would put me in a speculative short position (1/2R). My stop would be very nearby at 1870, perhaps a few ticks higher for good measure. If we close above the NLBL today or tomorrow however then we have a long signal.

More goodies below for my intrepid subs:


More charts and 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 subscriber you get free access to all Gold posts, which gives you double the bang for your buck!

Please login or subscribe here to see the remainder of this post.

Cheers,

Setups Galore Tuesday 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.

The spoos have advanced higher overnight and perhaps this ship has sailed. However IF (and only if) we see a retest of 1852.5 then I would be long here with a stop below 1850.

However the NQ looks good right here and now – I’m long with a stop below 3654. Yes, a bit speculative – only playing 1/2R.

VERY nice potential reversal pattern developing on copper – still a bit young but the risk is pretty contained. You can play 1/2R with a generous stop below the diagonal.

Event risk on all GBP and CAD related pairs today – so watch your butt in the coming hours (the times are in EDT).

But we’re only getting warmed up – quite a bit more waiting below the fold…


More charts and 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 subscriber you get free access to all Gold posts, which gives you double the bang for your buck!

Please login or subscribe here to see the remainder of this post.

Cheers,





    Zero Indicator
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