Back In The Thick Of It

Things are starting to look more positive as we are accumulating bullish context. As you recall the VIX triggered a bonafide buy signal (relative to equities) and thus far things are proceeding in the right direction. That of course doesn’t mean we won’t see an attempt to shake out some of the stragglers.

On our volume profile chart we are back in the thick of it – anything can happen around here and it has in recent past. But if nothing else the bears once again were unable to drag things beyond the point of no return, one which may have heralded a medium term trend change. So no cookies for the teddies and the bulls have another lease at life – at least for now.

The GBP/JPY correlation continues to provide important clues and thus far it seems to be leading higher.

Short term (left panel) we are holding the 25-hour SMA and may just breach that NLBL just below ES 1850. Not much context on the daily chart, so for now let’s stick with the hourly. As long as the 25-h is leading higher we are in squeeze mode. Won’t last forever though and various strategies for a shake out are probably already being hatched. If you are long from Monday then there’s not much for you to do – don’t over think this – hold your position and move your stop up with each 1R increment. It’s important that you let your winners run.

Thanks again to Scott for providing valuable guidance during my days off. It was short and sweet and very much to the point. That’s how I like it. Complicated charts and pages of rationalizations are for traders with too much time on their hands.

More below the fold for my intrepid subs:


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Setups Galore Wednesday 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.

We’ve got a ton of juicy setups this morning and equities are looking like they may ready to make a move. So grab a cup of java (or tea) roll up your sleeves and be ready for action – time to have some fun. So the GBP/JPY carry trade pair is still pointing down. If you look at recent shot term divergences you note that the pair always won.

However, I’m willing to consider both directions this morning, the potential for a fast move on either side is just too delicious to pass up. The Russell futures are treading water and are now facing a NLBL and a NLSL just a few ticks away. You know what to do – take a breach and use the inverse as your stop. DELICIOUS!!

I provided a bit more detail on the YM chart – very same setup. I mentioned ‘short until then’ but I should have said ‘short below the NLSL’.

The spoos not giving us ideal entry conditions and I would probably stick with the former two. However if it pushes above the SMA/NLBL combo then the bulls may just muster up the mojo to climb a few handles. Otherwise it’s looking pretty sad down here on the equities side. Bears rejoice but don’t get carried away.

But we’re just getting warmed up. Check out this beautiful configuration on the Dollar – I expect a big move coming and once again we have a small range separating the respective triggers.

More below the fold – please join me in the lair:


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Cheers,

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.

That’s right – back to work bitches! The next holiday on the horizon is Lincoln’s birthday (screw president’s day) on February 17 and then we should be good for a few months. Truth be told I actually enjoy the holidays as it gives me a chance to catch up on my chores. The new version of Heisenberg got deployed yesterday and it’s already kicking ass and taking numbers. It’s not too late – you can still sign up for the free beta. I also beefed up the documentation – please take a peek under the Heisenberg menu bar above.

Now since it’s been a few days since we looked at equities let’s get an overall feel of the situation first. Above you see the hourly/daily panel and on both we are looking at solid support thus far. Which leads me to our morning setups:

I don’t see anything on the event calendar that would affect U.S. equities right now. Thus I’m waiting for a breach of that NLBL at 1840.5 – if breached I will be long with a stop below 1836.

The NQ is even looking sweeter IMNSHO – both short term SMAs are converging and our trigger is at 1,605.5. Put your stop below the SMAs and Bob’s your uncle.

We have plenty more goodies for the subs – please join me in the lair:


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!

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Cheers,





    Zero Indicator
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