Drop The Baseline

Having been on the road until Tuesday I just realized that we’re heading into a long weekend. I suspect most of you are already on the way out or won’t catch this before Sunday night. So let’s dive right in:

The VIX Buy signal we triggered on Tuesday seems to be proceeding nicely. Worth noting is the fact that we have rapidly descended back toward a baseline near VIX 13.5 which only recently was breached. That’s quite a volatility squeeze and if you were caught with puts (and even calls) near the bottom and didn’t get out then your premiums aren’t worth jack at this point.

On the spoos we are heading toward a NLBL which represents our first technical hurdle. Nothing else to see here…

Our GBP/JPY correlation seems to be supportive – it’s served us well again this week.

My YM entry this morning has paid off very handsomely and I’m taking it off the table now as we’re touching a NLBL on the daily panel. Good chance for a little shake out here.

I know it’s a long weekend and all but I actually ran into some very nice setups. Please join me in the lair:


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Per today’s theme I’m kicking off your Easter weekend in style by dropping a real bassline:

Make sure no pets or younglings are nearby then grab a cold one and crank this sucker up. Wishing you all a fabulous weekend – see you guys next Monday!

Cheers,

Bounce It!

Equities seem to be hooked onto Juicy J’s recording studio as they’re on their way to winning his much publicized twerking scholarship (cough it back up Ms. Holmes!). Now we’re back at the bottom of ‘ze zone’ and whether we’re bouncing back up now is of course the big question as there’s not too much in terms of technical context.

As a matter of fact all we really have right now is our trusted volume profile chart on the spoos:

As usual a spike into the no fly zone after which point the bids dried up quickly. Basically we’ve now built our house of pain with the floor being near 1830 and the roof somewhere around 1880 – 50 handles of market maker bliss.

If you haven’t lost your appetite for equities then that IP candle on the NQ may look tasty. Triggers on the chart – not a bad range and I may throw 1/2R on it.

I tried to get in early this morning but got whipsawed out. That hourly NLBL would have been a great catch per our plan but it didn’t work out for me.

Gold update – I actually realized that I committed an operator error. Technically I should have closed out on Friday as it had touched 1R and then pulled back. Well, sometimes it’s better to be lucky than to be good – I’m staying in it and will move my stop to 1306 – 1R locked in.

NG – almost touched the 1R mark today and here we also will keep her running.

Wheat – a setup this morning which I also tried to get in but then got stopped out. Afterward I was heading to the gym and I missed the spike higher. BUT this is a textbook example of an inverse H&S as that little head fake is very very typical. The perfect entry IMO would have been that little IP near today’s bottom. If you caught it then call yourself one lucky bastard (probably not – if so speak up and reel in your glory). Anyway, good chart – keep it around as a great example of H&S formations. They are not easy to trade despite their popularity.

AUD/USD update – 1.5R in one day – that’s how we like it. Move your stop to 0.9339 – you’ve locked in one R.

More below the fold for my intrepid subs:


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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.

The GDP Estimate released by the NIESR is due to be out this morning around 10:00am EDT – it’s a big one for the Brits and I recommend you stay out of GBP pairs ahead of time.

Equities have descended lower overnight but I’m seeing the possibility of a ST entry right now. Long the NQ above 3,507 with a stop below the psychologically important 3,500 mark. Inversely being short below 3,500 with a stop above the NLBL may be a good play (sorry for not painting that on the chart).

A little H&S formation on the hourly wheat chart. Interesting and I am tempted to slip into a few long contracts on a breach of about 675.5 – the 100-hour SMA is producing a pretty good neckline here. Good setup IMNSHO.

CAD/CHF – a bit more speculative but again I like the formation as it’s still in a daily uptrend. Long above 0.807 with a stop 10 pips lower. I’m not so hot on the down side here – but yes she could move fast if she breaks, so proceed at will.

It’s not too late – learn how to consistently bank coin without news, drama, and all the misinformation. If you are interested in becoming a subscriber then don’t waste time and sign up here. The Zero indicator service also offers access to all Gold posts, so you actually get double the bang for your buck.

Cheers,





    Zero Indicator
  1. recent misdeeds

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