The Zombie Apocalypse Is Near!

Of course the MSM is all up in arms about ‘evil’ Russia deploying troops in Crimea (it’s in Southern Ukraine – a peninsula of Ukraine located on the northern coast of the Black Sea). And the usual suspects are spinning at max hype velocity fully expecting all this to trigger WW3. I guess I better start stacking up on beans and bullets. Oh wait – my arsenal is all packed in long term storage over in Los Angeles – bugger!

Look guys – I tell you exactly what’s going to happen. Absolutely f..ing nothing. Like all other real or manufactured crises of recent past this is going to blow over eventually. Despite all the bellicose rhetoric neither the Russians or the West have any interest in escalating this conflict beyond the region. Of course I have no idea how it’s going to resolve and whether Putin will eventually cede control of Crimea after securing Russia’s interest. But unless you are Ukrainian or Russian, honestly, do you really care? Is this going to affect your life, your investments, or your trades? I mean going forward? Really? So why should you care?

If there is any damage then it has already been done. Obviously our long campaign on the equities side has been taken to the woodshed. But that’s ancient history – what we care about is what lays ahead. However there is no predicting how all this will play out and thus I recommend you fade the paper and instead stick with the charts, as usual. Don’t get caught in this week’s hype – stick with what works and don’t let the news lead you to become biased. Because that leads to the express elevator to the woodshed. By the way, if you want the skinny on this train wreck then head over here.

I already mentioned that the long campaign has been stopped out – last night I was actually pretty lucky hitting a bid two ticks below break/even at ES 1844. Since then equities have further degraded – the E-Mini is now trading below a new daily NLSL at 1838. If we close below it then we may revisit the 25-day or the 100-day – but as you can see they are both swinging up now and unless we fall off the plate I expect on of them to act as support.

During uncertain and headline sensitive times like these I usually switch into survival mode. Until further notice trading now becomes an exercise of asset protection and damage mitigation. Which means I am extra picky about setups, my position sizing drops to below 0.5R, and I make extra sure that there is little correlation risk. In other words hunkering down, waiting out the storm, and live to fend another day.

A bit more below the fold for my intrepid subs:


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Cheers,

He’s Dead Jim

Apparently most of you have already left for the weekend, so I’ll be brief. The spoos have been pushing sideways all day and after seeing the Zero Lite paint a complete flatline I decided to cut my ST longs at break even:

I’m afraid Bones is right – the E-Mini expired sometime after lunch and nobody had the heart to tell it. We’ve got a complete flatline going and that’s when I usually step aside and call it a week.

Sunday night I recommend you start watching 1840.25 and 1835.25 – those two are our long and short triggers. The former is a NLBL and the latter still qualifies as an RTV-S. Obviously the range is simply ridiculously long and if you want you can widen your ISL a little bit.

Quick update on sugar – I was elated to see that some of you subs jumped into that one as it was such a beautiful formation. Well, since this morning’s entry it already earned us 1R and that means our stop now moves to 16.73. IF we close below it then you will need to end this campaign.

A few more goodies 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.

Wishing all of my steel rats and lurking Slopers a very relaxing and Hefeweizen infused weekend. We’ve killed it this week and deserve to take it easy for a few days. At least that’s what’s on my agenda.

Prost!!

End Of The Line (For Now)

After enjoying a relentless series of 11 consecutive higher closes the spoos enthusiastically approached our weekly Net-Line Buy Level (NLBL) this morning and promptly bounced back. The FOMC minutes are just about to be released and it seems equities are enjoying a little lift right now. Nevertheless there are hurdles ahead and I think it’s reasonable to assume a bit of resistance here.

I pointed out the 1844 NLBL yesterday and it was great spot to get positioned. The E-Mini breached it by two ticks (today’s high is 1844.5) before gravity started to pull things back southward. It’s possible they’ll run it back higher toward the close but statistical odds strongly support a close below it today – given we’ve got 11 higher closes behind us.

Then there’s also our volume profile chart which shows a very steep cliff starting – guess where? Exactly – so combined it’ll take some doing to overcome all this. Should we push above it today (against all expectations) then we’re probably going to see a low volume short squeeze.

If you’re a Zero sub then watch the signal after the announcement at 2:00pm EST. This is the latest one at 2:15pm and I don’t see anything significant – in fact today’s single is minuscule and we didn’t even push above the 0.5 mark – which means low participation.

And here’s my best campaign of the year thus far – it’s the one that none of you cats took apparently, at least judging by the comment section. The subs may remember the inside day I pointed out on coffee. I expected a big move but heck – I got a lot more than I bargained for. Frankly speaking I was pretty busy yesterday and today and had not even realized that the damn thing had produced over 3R yesterday and then pushed to 9 friggin’ R today! Campaign management be damned – I’m closing this sucker out and will be smiling all the way to the bank. This is surely one chart I keep for posterity.

New setups lurking below – 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!

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

Cheers,





    Zero Indicator
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