My favorite quarter of the year is slowly drawing to a close, with Memorial Day in the U.S. demarking the beginning of the long awaited vacation season. It’s been a long winter and we haven’t really seen much of a spring over here in the Mediterranean to be honest. The past three months brought us only a few warm days as the general theme was dominated by rainy weather, cold spells, and even a patch of frost in late April that damaged a good number of vine crops up North in Southern France.
Someone is going to get stomped here and it’s going to be glorious. Once again equity futures are looking tired and ready to slip off the plate (or feigning to be) for no apparent reason. Which would be the perfect spot to do it if you abandon traditional technical analysis for a moment and allow yourself to approach trading from a more heinous perspective.
As equities continue to gyrate over respective medium term support levels I do not feel particularly tempted to get sucked into placing any haphazard directional plays. Precious metals are not making it easy for us either but appear to be more promising as there remains significant upside potential.
Equities are actually looking productive for a change, as we have major indices in sync retesting medium and long term support. That’s a respectable long opportunity although I am already inversely exposed and must let that one resolve first before embarking on any new campaigns. Which is an iron rule I very rarely violate and only if I see very compelling reasons to do so. When in doubt stick with the script, especially in whipsaw tape. Not because you will always bank more coin but you will lose a lot less by not getting lured into abrasive campaigns which push your buttons and further lead to excuses to re-establish bad trading habits. System purity almost always trumps [...]