Equities are soon facing a veritable chasm on our volume profile chart, one which spans roughly between ES 1940 and 1980 – 40 handles of non-participation where pretty much anything can happen. At the current velocity I have some doubts as to whether we’ll even make it half way through there but I don’t want to be too hasty with making an assessment as we’re slowly dropping out of a high volatility range and may be seeing more trending tape later this week.
Conceding we have very little technical context right now I however do love the short term panel on the E-Mini right now. Without further ado – here’s our evil scheme for the day: Grab a small short position here until about 1960 (we’ll have to watch the Zero after the open). If 1960 gives then I’m long with a stop below the current spike low near 1940.
Welcome back to Evil Speculator! As you can tell the place has undergone a bit of an overhaul over the past two weeks. Unfortunately I am only about half way done as we’re still missing quite a few links and some page content which I’ll have to fill in over the coming days. The process of beating our new site theme into submission took me longer than anticipated. I usually expect delays but I was forced to burn many frustrating hours figuring out various problems on my own as tech support staff was still on holiday. In addition I had underestimated how much legwork would be required to update older posts to fit the new format. Anyway, we’re getting there but I ask [...]
As you may recall I am still long the spoos, having trailed the current advance since 2013.75. Last week I proposed that we may be heading into yet another pre-X-Mas correction as the timing has us a little early in the season. Given what I’m seeing this morning we are literally sitting at the knife’s edge and that’s a great opportunity for a little cheap hedge:
Since I want to hang on to my ES long position I decided to hedge myself via the NQ, which shows us very nice context. Quite frankly I have no directional bias here yet – we could easily paint new highs today. But given the ST context this is a very effective hedge given the current [...]