Sitting On The Edge

Equities are at an inflection point – yes, we are pushing into new territory but due to a shallow correction yesterday we may not be ready to start another squeeze. I’m still holding the long positions I grabbed this morning and my stop remains at 2008.5 which means I was one tick away from being touched.

2014-11-05_spoos_volume_profile

The E-Mini volume profile chart shows us what we’re up against – we are heading into uncharted territory and I think a more thorough correction is needed to kick this thing higher into the Santa season. Either way, I’m still holding my longs I grabbed at 1872. My current stop is at the 2nd nearest spike low at 1960. I am considering to shed 20% if we drop through the previous one at 1995.

2014-11-05_SPX_update

The hourly SPX panel shows us a very solid 25-hour SMA which however is starting to lose momentum. So the situation here is pretty clear. The bulls need to start running or face a more thorough correction, perhaps all teh way toward 1962 where we find the 100-hour SMA (see, there IS method to my madness).

2014-11-05_VIX_SPX

The VIX is slightly elevated as you can see from the ratio I’m plotting below the SPX here. So I think market makers are expecting a correction here as well. Strangely thus far nothing has yet materialized.

2014-11-05_GBPJPY_update

Update on the GBP/JPY setup from last night – see what I meant by not having a directional bias? Who looked at that chart yesterday and would have considered a LONG entry? Perhaps 1% of all traders – that’s how many. Well we did and my recommendation is to move your stop to b/e – you are now sitting pretty. I can’t promise that this squeeze will continue but the die has been cast and now we wait. By the way GBP/USD worked fantastically for a few hours but then somehow ran back to our entry – I recommend an exit on that one.

2014-11-05_AUDCAD_update

AUD/CAD – I was whipsawed there this morning but got above 0.9905 – taking profits now which earned me a bit over 1R considering the 1/2R I lost being long first.

2014-11-05_crude_update

Crude – perfect entry here this morning and we are now uniquely positioned for continuation higher. Again, no guarantees but move your stop to break/even and then sacrifice a medium rare beef burger to appease our overlords at the firm whose name must not be spoken.

Only one measly setup this evening and I’m keeping it for my intrepid subs:


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Cheers,

Obligatory Correction

The gloves came off mid October and in the ramp that followed any remaining grizzly specimen were added to the extinction list. Not so coincidentally it’s been silent here ever since, which tells me that many of you rats are still afflicted by a chronic bout of directionites. The cure is right in front of you – you know what do. Meanwhile it’s been business as usual down here in our badly decorated trading lair and the green lights keep flashing happily. Today’s mini-correction comes as no surprise although we did expect something a bit less obligatory.

2014-11-04_spoos_ST_update

It seems that the 100-hour SMA is now acting as support, although I would enjoy a more thorough test, which would provide us with a bit more of a buffer zone. It’s time we finally abandon the 2k range – and if possible to the upside.

2014-11-04_spoos_update

Mind you there is a forest of Net-Line Buy Levels in the way and if we finally close above ES 2015 we ought to be good to go. The BBs are swinging higher which opens the door for the final ramp higher. However, technically speaking it would be best to see a more pronounced correction here, today’s little dipper is nothing to write home about.

2014-11-04_AUDCAD_setup

Setups – of course: AUD/CAD once again near a big seller and if it hops over that NLBL I am going to be long. Until that happens I’m short with a stop above 0.99535.

More below the fold – secret decoder ring required:


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Cheers,

Happy Halloween!

Boy oh boy – I live for this stuff! Massive moves across the board and of course Thor is loving it. Before you guys head out and slip into your Halloween costumes I wanted to serve up a few more charts as we are seeing had significant developments across the board:

2014-10-31_spoos_update

The E-Mini (and the S&P cash) just painted a new all time high – who would have expected that just two weeks ago? Well, we didn’t but we had the foresight to go long near 1860 and our accounts have been blinking green ever since. As I said – this thing is just getting warmed up. Today it’s going to be pretty much ramp & camp here and most likely we’ll be seeing a shake out next week. But the weekly is donning a brand spanking new buy signal and unless disaster strikes before the close it’s on the books.

2014-10-31_gold_update

GOLD!! Actually was looking at being long yesterday but to my credit I pointed out that being short below 1170 is recommendable. And we just breached that and a brand spanking new weekly NLSL. Wow this is huge! Just look at the monthly panel to grasp the significance of what’s happening here. The gold bugs are near a panic no doubt and this could easily fall off the plate. I expect some gyrations here at this major inflection points but being short with a stop above the 1237 NLBL is the name of the game now.

Two more juicy long term charts waiting below – please meet me in the lair:


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And now it’s time for you know what:

beer4

That’s right – Hefeweizen time! And we damn well bloody deserve it as we’ve played this advance (and the preceding sell off) like bosses. Allow me to take you out old school:

Prost!

oldtimer_yukon




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