Escape Velocity

In physics, escape velocity is the speed at which the kinetic energy plus the gravitational potential energy of an object is zero. It is the speed needed to ‘break free’ from the gravitational attraction of a massive body, without further propulsion. Now if you apply this concept to the current situation in equities then it’s easy to see the gravity well that’s been holding our butts inside this year’s sideways churn zone from hell:

I’ve pointing at this volume profile chart for weeks now and for a good reason. Every time we get near the edges we get pulled back in. Manna from heaven for skilled swing traders but a bit exhausting for anyone waiting for this thing to pick a direction. I frankly couldn’t care less as I’m drowning in setups today but as you guys are hell bent on playing equities I’ll be Huckleberry.

However I have to concede that we are looking good on the equities front. I mean come on – a small inside day candle near upside resistance, that’s the stuff we’ve been waiting for. I did expect a little shake out, yes – but quite frankly I didn’t expect it to be this little.

Same setup on the YM – almost identical. FWIW – I won’t be taking either of them as I have two with better context. Unfortunately for you leeches those I’ll reserve for my loyal subs :-P

I won’t be an Unmensch however, so here’s gold which I think is painting awesome context and now we’ve got an inside candle to get us positioned. Either direction on that IP candle is looking good IMNSHO.

USD/CAD – you’ve got two options on this sucker. Either long courtesy of that shooting star (which we would like to fail if it’s not too much to ask) or long above that NLSL. Maybe we’ll have to play both to get positioned. And yes, although the downside cannot be ruled out I think that the upside would be the easier play. As you know I like my victims in prime condition and ready for the plucking.

Alright, quite a bit more where this came from – please step into my lovely spring lair:


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So, did I promise too much? Didn’t think so! And on top of all that I managed to finish testing the new CrazyIvan release which will be deployed tonight. Very excited about that and I hope everything is going to run smooth.

Cheers,

Setup Bonanza!

Interesting turn of events this morning – although my growing cautiousness concerning the equities (long) side has thus far paid off I’m not yet convinced that we’re heading into another correction. Be this as it may, I did get positioned nicely courtesy of the TF this morning and I intend to hold this position for now or until stopped out at break/even:

Although there was a quick fake out toward the NLBL my stop was well placed and thus far I’ve racked up almost two R. Which is nice but not really what I’m interested in – I’m turning this into a lottery ticket to the downside given what I’m seeing on the short term momo side:

VIX:VXO (which I showed to the subs yesterday) continues to point downward. Again, it could be a fluke or a bear trap but I already earned my entry and I’m sitting pretty right now.

Out of fairness I should however show you guys the Zero Lite which is rather flat today. So not much participation on the downside here and I give this 40% chance to continue lower. I don’t see a long entry here right now either unfortunately – once I do I’ll let you guys know.

Update on the Dollar entry which I hope some of you guys grabbed yesterday. The right panel shows us at the 2R threshold and that means we are either moving our stop up if we close above it or close our position if we close below it. That is via the CrazyIvan campaign rules. If I would employ Heisenberg then I would have taken partial profits a bit above 1R and moved my stop to b/e. So I leave this in your capable hands – it’s possible that the Dollar is going to enjoy a run higher. But heck – it’s the Dollar right? So I’ll stick with CI rules on this one ;-)

So many awesome setups today – here’s crude gracing us with a very interesting configuration I tried to explain on the chart. Could swing either way and we are near the $100 mark – will definitely take whatever trigger this throws at me.

And I cannot believe I’m actually giving this one away for free as it’s my favorite. I have already gone long via this morning’s short term entry near 104. My stop is at today’s lows and all that ties very nicely into the IP and RTV-L that any of you leeches may grab later tonight. Absolutely love this setup and I think it’s coiled up and ready to snap.

More goodies below the fold – it’s a veritable futures bonanza today – seems Hoss is getting all excited. Please grab your secret decoder rings and join me in my freshly painted spring lair:


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

Cheers,

Busy 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.

I’m seeing more reasons for measured amounts of paranoia on the equities side. Here’s the GBP/JPY (popular carry trade pair) plotted against the spoos. The former is descending while equities continue to hold strong.

I’m considering short positions but need a reason. Don’t have one yet on the spoos – if you’re long here then simply watch the 25-hour SMA and I think you oughta be okay. Slight BB compression by the way – we may be seeing a quick move here soon.

I’m already short on the TF but it’s experimental with only 1/2R and a tight stop above that NLBL. If it snaps back I’ll be long above the NLBL with a stop below the SMA.

But we’re only getting warmed up – plenty of juicy short term setups this morning, especially on the Forex side. Here’s the USD/JPY which is resembling equities. I would be long above the NLBL and short once it drops below 103.8 (with stop above the NLBL).

More below the fold 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,





    Zero Indicator
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