And That Is Why We Follow The Charts

Last evening I proposed that the ongoing shake out was merely an attempt to scare the children. Seems like my bold claims weren’t that far off the mark as our support lines held up just famously. And that, my dear ladies and leeches, is why we follow the charts.

And further earning my keep here I also proposed a nice long opportunity on the E-Mini this morning. I hope you took it as it’s now time to take partial profits. Actually since I took this snapshot it’s been pushing higher and is almost at target – time to cash out. You are welcome! Evil is as evil does :-)

Strangely enough – the recent gyrations on the VIX have us now two steps into a, believe it or not, bonafide VIX Buy Signal. That’s relative to equities by the way – meaning if we get one more lower close tomorrow odds suggest that equities will be heading higher in the course of the coming week. A bit of a head scratcher, this – but the rules are the rules. My condolences to all you hobby bears.

Also worth noting - as I’m writing this we are technically painting an inside day on the E-Mini.

Dollar update – once again our chart was treating us well. You subs may recall the ‘last kiss goodbye’ I was proposing on the DX and thus far that’s exactly what’s playing out. However there is a NLBL right above and if we would breach it in the coming three days then we do have a technical buy signal. Again, mind the two daily SMAs above which would most likely provide additional resistance.

Another example of why we fade the news and follow our charts. Gold has been painting this interesting little diagonal with the 25-day at its center over the past few weeks. Although there really isn’t much edge in playing this configuration on a daily basis I suggested to you (i.e. my subs) that playing the swings was definitely worth it. I hope you paid attention and banked some coin today.

Sugar triggered its lower inside day trigger. Good entry and you ought to be short now.

Let’s sling some stock symbols today – in my never ending quest for market domination I managed to run into a few keepers:

More charts and non-biased 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 or Geronimo subscriber it includes access to all Gold posts, so you actually get double the bang for your buck.

Please login or register for Zero Data Feed (non-recurring) or Zero Data Feed (recurring) or ES Gold (non-recurring) or ES Gold (recurring) or geronimo/ES (recurring) or Zero Pimp-A-Thon to view this content.

Cheers,

This entry was posted on Tuesday, February 5th, 2013 at 2:13 pm. Both comments and pings are currently closed.



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

    Speechless.
    New high, but its not overbought anymore.
    Two tiny dips -  blink and you missed it

  • AmazingLarry

    Had two great XIV and VXX trades in the past few weeks. Can’t complain a bit about that VIX coin symbol. ;)

  • http://evilspeculator.com molecool

    Yup…

  • ptosh

    got out of that massive IWM short via TZA yesterday morn and have been not trading since.  very refreshing and healthy to take a step back.  prudence and patience.  

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

    Clean your books

  • Skynard

    Wonder what happened to RIMM, stopped trading?

  • badflightrisk

    New symbol BBRY

  • Skynard

    VWAP death grip:)

  • Skynard

    Ah, thanks.

  • http://evilspeculator.com molecool

    FYI - http://content.screencast.com/users/evilspeculator/folders/Jing/media/cb5f446d-0ac3-4c0d-be49-f064548679ae/00006710.png

  • http://evilspeculator.com molecool

    Quiet here in the past few few days – very interesting…. Could it be that some of the regulars were bearish? ;-)

  • Skynard

    Was bearish, although was expecting the ramp. How high was the question:)

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

    bearish in spirit only.  I’ve learned not to step in front of buses.
    like this one:http://stockcharts.com/h-sc/ui?s=$BPSPX&p=D&yr=0&mn=4&dy=0&id=p38430215524

    I’ll dance by the fire exit for now, with the really hot chicks.

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

     Steady advance lulls people into complacency.
    Who needs all this mambo-jumbo, if market goes up every day?
    Right…?

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

    Hokey trend lines and ancient indexes are no substitute for a good Zero at your side

  • http://evilspeculator.com molecool

    A bit early those Mole signals but they eventually forced that bitch down! ;-)

  • http://evilspeculator.com molecool

    Well, I can always count on the gerbil to pick up the slack. Many thanks for sticking around – you know we all cherish your presence.

  • bdoone

    VIX buys signals with sub 14 VIX
    Gerbils dancing with chicks
    Strange days indeed!

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

    Google Trend results for search term “Stock market”
    12 months low
    Kinda too blunt statistical tool, but I’m not surprised
     http://www.google.com/trends/explore#q=stock%20market&date=today%2012-m&cmpt=q

  • http://evilspeculator.com molecool

    no shit? wow – you guys know what this means, right?

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

     Not yet,
    wait for Time magazine cover first
    He-he

  • AmazingLarry

    Aww dammit, Google is manipulating stocks down!?!?

  • captainboom

    Had some work for my real job fall in my lap, so had to do that.  Still catching up, and have some homework to do.

  • Skynard

    Hehe!

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

    no.
    but the search for speculator keyword , doesn’t look good.
    http://www.google.com/trends/explore#q=speculator&cmpt=q

  • http://evilspeculator.com molecool

    Hey – it gets better. Check this out.

  • Rightside_ot_trade

    HYG dead rat bounce at the daily 100, and an ID
    http://screencast.com/t/bEsJod3IF4y6
    Double down JNK
    http://screencast.com/t/1VHh2lAEgbpv

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

     Wondering myself – why i never used it before. Seems a great contrarian timing tool.

  • http://evilspeculator.com molecool

    seriously…

  • Rightside_ot_trade

    GOOGoo I saw it earlier, thought of an RTV Sell 
    see if another higher high manana with narrower range, 
    if so even better 

  • http://evilspeculator.com molecool

    Guys – check this out. Now guess when AAPL was painting medium term tops? We ought to look into this more… 

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

    correlation doesn’t equal causation.
    HOWEVER, if you could find correlation.  It would be fish in a barrel.
    Oct 04 2011, & June 2012 come to key dates to find spikes.

  • http://evilspeculator.com molecool

    I’m just throwing it out – it would be interesting to parse that across let’s say 20 big symbols and keep track of it.

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

    yep.  Speculators should be finding hard data to speculate.

  • AmazingLarry

    Been using Trends since 2010 for “buy gold bullion” and “buy silver bullion.” Check those out vs price action. They recently updated their technology where you can compare multiple trend charts, used to be a lot more crude.

  • Rightside_ot_trade

    USD/CHF
     I like the context of a breach of the mid December spike lows. late shorts that got crushed at those spikes are now certain they are finally right. may be hard to displace them but if so could be a flier. 

  • http://evilspeculator.com molecool

    How do you do that?

  • Rightside_ot_trade

    I like visual descriptions for market behavior (or response in this case) that one is right on target.
    just don’t let chicks in heels get in front if the running starts  

  • http://evilspeculator.com molecool

    How does a Gerbil climb on such a tall soap box?

  • http://evilspeculator.com molecool

    I suggested to look into this more – not to bet the farm, you silly rat!

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

    it’s the hind legs.
    real thumpers.

  • AmazingLarry

    To compare trends? Just add more search terms on the left hand side. Could only search one at a time before.

  • Skynard

    Rode to the 50 and have shorted EURUSD

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

    Glad someone is trading it. I was looking for a place to reshort

  • Skynard

    Hehe, right on the 100 as well after a 1% sell off:)

  • Rightside_ot_trade

    Yep and just under Fridays big spike and reverse to the new high

  • Skynard

    Wow, nice fakeout on AUD. Here we go!

  • newbfxtrader

    Its been a while bro. Its unable to mount a rally even with good Chinese news last week. That was our tell. Its headed for below parity.

  • newbfxtrader
  • newbfxtrader

    Also still short GBP/usd for some time now. Its going into the abyss. Short the next bounce if you are not in yet.

  • ridingwaves

    try gas prices against crude moves….probably a better counter trend indicator…I use trends for work and its best to filter out and go with US audience subset…

  • Skynard

    Nice hourly hammer on the /6j, just saying. Dipped toe again:)

  • Skynard

    AUD getting clobbered:)

  • Joe_Jones

    Morning Rats. Kind of nice to see that Bucky hasn’t died overnight ;-)

  • Rightside_ot_trade

    Anyone watching DAX or CAC? Slightly lower lows but recovering some from
    yesterday’s wide rangel close on lows

  • Skynard

    Shake out on /DX, I’m out.

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

    ¤ø„¸¸„ø¤º°¨¤ø„¸¸„ø¤º°¨ 
    ¨°º¤ø„¸F R E S H „ø¤º°¨ 
    ¸„ø¤º°¨ M E A T“°º¤ø„¸
    ¸„ø¤º°¨¤ø„¸¸„ø¤º°º¤ø„¸





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