Sorting Out The Mess
If you are attempting to make sense out of the SPX or E-Mini by looking at the daily chart then you may be scratching your head right now. But don’t despair – the Mole is standing by to assist. Sometimes when the daily view lets you down it’s best to either zoom in our out to gain a better perspective.
And today it’s the short term panel that’s making the most sense. Apparently the 100-hour SMA is providing support since late last evening and after a bit of whipsaw it’s now pushing above the 25-hour SMA as well. Now that one will start to flatten out soon and probably follow the 100-hr up through Friday. Which means we’ll have a pretty solid support base to work with – if both SMAs fail then we’re heading lower. And if she holds then we’re probably going to climb the 25-hour higher as soon as it starts to swing back up. For now we are a bit in limbo land. The next chart is not helping to make things more clear unfortunately:
I posted this one yesterday and only minutes after I put it up the tape started dropping into the close. Coincidence? I think not. Well, we’re seeing similar shenanigans as yesterday – as I’m typing this the E-Mini is pushing sideways but SPX:VIX is continuing to drop.
Meanwhile over in the woodshed the Zero Lite is going complete flatline. Not surprising as Christmas is only days away – but this means pretty much anything can happen anytime. And it seems whoever is pricing volatility seems to agree.
I have a little goodie for the peanut gallery and there are two commodities plays for the subs. I would have loved to post some FX setups but TOS blew up their charts with their latest release (what else is new) and thus I can’t trust what I see on my indicators.
Anyway, ORCL is looking particular juicy today. It’s rather interesting to see an inside day after the bear stomping candle we saw yesterday. I would be tempted to play either breach with very small exposure. Any takers?
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This entry was posted on Thursday, December 20th, 2012 at 1:52 pm. Both comments and pings are currently closed.