How It’s Done!

Every once in a while I see some lost souls in the comment section who just may benefit from a friendly reminder as to why I bother to post technical setups here in the first place. Dont’ get me wrong I’m all for becoming a self sufficient trader but let’s just hypothetically imagine for a moment that what you’ve been doing in the past few months or even years hasn’t been working very well for you.

As human beings we are all creatures of habits and change requires not just realization but also effort. As the saying goes: The definition of insanity is doing the same thing over and over again whilst expecting different results. And in particular when it comes to trading the markets – in the end only results count. So let’s see what does work for us – not in theory in some fancy trading book, but right here today!

Cotton was touching ST support this morning and I expected the hourly NLSL to put up some of that. Below we also had the looming 25-hour SMA but cotton didn’t even look back and instead decided to make a b-line for the upside. I would strongly recommend taking profits here as we don’t want to overstay our welcome.

By the way this chart right here goes to show why you never ever want to go short solely based on the fact that a symbol is ‘overbought’. Shortqueeze.com exists for a reason and this counts double for trading forex and/or commodities.

Bonds – the 30-year did what I actually hoped it would do – breach both SMAs and push higher. Now that was a great entry but we now face a decision. Take profits here or stay in the trade as we are butting against the 25-day SMA. I would be out here and re-enter if we get a solid breach above. Alternatively you can take partial profits, put a stop a bit below and then keep adding positions again after a breach.

Sugar turned out to be another sweet trade today (pun intended). Great entry near the NLBL and at the 25-hour SMA. I strongly recommend taking profits now.

Copper – great entry as well near the SMA and it’s doing well thus far. Once again we are faced with a decision as we just pushed through a daily NLBL. I personally am holding with a stop below the NLBL as I like the setup and there’s quite a bit of support below right now. So it’s worth the risk of giving up my existing profits in my book. You can of course take partial profits – all up to your risk exposure rules.

The Dollar didn’t really go anywhere yet – I’m holding my short until I (hopefully) see a reason to flip it for a long.

Last but not least there’s the CAD/JPY which gave us some tingles earlier today but it seems to be holding the line. I think it’s worth holding for a possible pop higher – we do have a possible floor pattern and unless we breach 89 we ought to be in good shape.

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,

This entry was posted on Tuesday, January 22nd, 2013 at 1:52 pm. Both comments and pings are currently closed.



  • http://dartht.blogspot.com/ Darth_Gerb

    perfect timing.

    First Rule Of Human Nature:People are attracted by solutions to their problems (They want a Market Guru to make them money – no hard work required.)

    The Second Rule Of Human Nature:People forget (who needs a track record?  on with the next prediction!)

    Third Rule of Human Nature:People want to be confident they are making the right decision (but by the time every knows, it will be to late.)

  • BobbyLow

    A little FYI and I’m not sure what it means – if anything.

    During the first hour of trading beginning at 9:30 AM, approximately 253 ES Contracts Changed hands.  

    Over the past 2 1/2 hours volume on ES appears to be on a diminishing scale and has traded less contracts then it did during 9:30 AM to 10:30 AM.

  • http://dartht.blogspot.com/ Darth_Gerb

    if I may add?
    AUD/JPY has been sinusoidal since the 10th, but /ES has been on a slight hill.
    divergence? I have no idea.  someone tell me it quacks like a duck.

  • itslance

    Is that what those pictures are?  I just subscribe for the humor! ;)

  • http://ibergamot.blogspot.com/ i Bergamot

    Buying more FB

  • http://twitter.com/NobodyTrader Nobody Trader

    Still good time to get long gamma, me thinks.

  • Curiousmind3861

    that is one wicked drop in GBPUSD..

  • Skynard

    Was stopped out of /ES short from Mon. Entered short here, seems like a good idea:)

  • Joe_Jones

    same here. backing up the truck now. Good enough for Gov work.

  • Th3_Acist

    Just bought at lower BB touch…we’ll see.

  • jmoney3000

    Mole-

    Thank you greatly for adding commentary on your stop adjustments once a trade becomes profitable.  It is something I had hoped for in the past and would love if you continue to add as much commentary on your trade management as you always have on trade entries.

  • Rightside_ot_trade

    Covered last weeks shorts about half hour ago
    Not going to risk that IP on the 240 minute

  • itslance

    That’s pretty brave with a close at the high

  • Skynard

    Wow, Bloody Amazing!

  • badflightrisk

    GOOG and IBM up up and away

  • http://ibergamot.blogspot.com/ i Bergamot

     I am long the same 1 position from 1/3/13. Added 1/2 today, want to add more.
    Warning! I usually add at the top

  • Guest

     Doesn’t AAPL report today?

  • badflightrisk

    Tomorrow

  • captainboom

    Tomorrow.  Should report about 4:30 PM.  Conf call at 5:00

  • http://ibergamot.blogspot.com/ i Bergamot

     Thanks.
    Found it too, tried to delete that comment

  • jmoney3000

    Haven’t touched equities in months.  Shorted 1487 on acct of the relative strength in ZB & 6J.  We shall see…

  • Rightside_ot_trade

    Thanks, let me know ;)

  • itslance

    Where’s your stop set?

  • Skynard

    Waiting for this thing to cool off right now, damned if this is not a blow-off:)

  • itslance

    Might be a late night for ya :)  I half way expect them to dump this thing when everyone is sleeping.

  • Skynard

    Just ran a marathon, should see some exhaustion setting in. That is exactly what to expect!

  • badflightrisk

    Take a look at our current $SPX chart vs the 2007 top.  Almost a mirror image.

  • http://dartht.blogspot.com/ Darth_Gerb
  • newbfxtrader

    Are we there yet?

  • Skynard

    Sleep is for closers:)

  • Skynard

    Some crazy action on the currency side, that’s for sure.

  • newbfxtrader

    You know this is just the beginning. Japan is joining the unlimited QE party in 2014. BOE will follow. Its going to be insane.

  • newbfxtrader
  • Curiousmind3861

    spx is like the energizer bunny..it just keeps going and going and going…

  • http://dartht.blogspot.com/ Darth_Gerb

    dunno. wouldn’t hurt to have some cash
    reminds me:
    http://allstarcharts.com/wp-content/uploads/2012/09/9-23-12-bear-not-yet.jpg

  • http://dartht.blogspot.com/ Darth_Gerb

    currency WARS.
    the new battleground.

  • Y KW

    Wide swings in markets are quite common at certain stages of their evolution from what I have seen over the years … hence ‘crazy’ equals a message in terms of the Language of the Market = opportunities.

  • Skynard

    Ah yes, becoming adamantly familiar with price movement such as this. Kind of gets you going:)

  • Y KW

    A treasure trove indeed!

  • http://dartht.blogspot.com/ Darth_Gerb

    that link is 4 hours old!
    dam, i’m in sync.

  • http://dartht.blogspot.com/ Darth_Gerb

    AUD/JPY, there was some support around Christmas, so no victory …yet
    this baby could get back up to 95. (never say Never)

    the speculation is Risk is off, and /ES doesn’t know yet.
    http://s8.postimage.org/ofojayq3p/temp1.png

  • Skynard

    Bull flag /6J with BL coming up:)

  • http://dartht.blogspot.com/ Darth_Gerb

    how’s the daily deviation working out?

  • ridingwaves

    fearless had 1550 on radar and silver at 85…the way the currency thing is working out the 1550 will hit first, silver might be next… 

    my price point was hit on silver and I’m out…

  • Skynard

    375 BL still good:)

  • Th3_Acist

    Noob question but what do you look for with the MACD histogram? just divergences?

  • Skynard

    On a daily/weekly chart it gives me strength, direction and best of all divergences:)

  • badflightrisk

    The ultimate guide to the ultimate end

    http://www.youtube.com/watch?v=4k5VzDBOcpM

  • FSUinArizona

    The hourly zero, what am I suppose think?

  • Joe_Jones

    the divergence is obvious

  • Skynard

    AUDJPY falling off the plate now:)

  • http://dartht.blogspot.com/ Darth_Gerb

    shhhh, quiet.  ancient chinese secret.
    grrreat, now i’m hungry. dam these NewYear’s diets.
    http://4.bp.blogspot.com/-ViiDWjV74YI/TjVztMPU-5I/AAAAAAAAAy0/g7GeTPnWxV4/s1600/004.JPG

  • http://dartht.blogspot.com/ Darth_Gerb
  • http://dartht.blogspot.com/ Darth_Gerb

    your in Detroit Sky?
    82 tomorrow.

  • Joe_Jones

    Yes it’s coming along. ZH’s crowd must have turned bullish, LOL. 

  • Skynard

    Blistering 2 deg F this morning. Buuuuuurrrrrr!!!!!

  • http://dartht.blogspot.com/ Darth_Gerb
  • Th3_Acist

    Accelerating…

  • http://dartht.blogspot.com/ Darth_Gerb

    93.00
    too fast IMHO.  possible relief bounce?

    /es is being a stubborn mule. something is whacked.

  • Th3_Acist

    I agree, I’m pretty sure we’ll find out soon enough what’s going on…

  • newbfxtrader

    CPI came in a bit cold….

  • Skynard

    /NKD getting clobbered again, love it:)

  • Schwerepunkt

    Bank of Canada orgy begins today at 10am.

  • Darkthirty

    Put the batteries in your womans vibrator backwards, and she’ll keep coming and coming…….





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