We now find ourselves deeply embedded in a technical information vacuum, while at the same time we are being bombarded with a veritable smörgåsbord of market rumors, conflicting news, political machinations, and pre-election witch hunts. As a financial blogger and trader this is hell on wheels and I can’t wait for this entire freak show to at least slow down a little post November 8. At least one would hope…
As we are officially embedded with the bear brigade it’s now time to scope out the bull’s long term defense perimeter. Since Sergeant Gold Gerb suffers from chronic insomnia he was uniquely qualified to make his way into enemy territory overnight and report back to us. Not only was he able to collect extensive intelligence, he even managed to take out a nest of stop runners single handedly with nothing but a sharpened spoon. Now here’s some of what he uncovered:
In the end it’s all about the money and more specifically what happens on the currency side. Although Forex trading has effectively been turned into a small sideshow in the United States, due to stringent Dodd Frank regulation that mainly affected retail traders, it would be a mistake to not pay attention to what’s happening on the currency side. And what I’m seeing across the board, on a long term basis, is rather disconcerting.
Yesterday’s low participation stop run on E-Mini came within a tick or two of my current trail which still sits near my break/even point. I assure you that there was no foresight or technical skill involved whatsoever and I’ll ascribe it to pure luck. We’ve had quite a bit of that in the last few weeks and it tells me that I probably shouldn’t push my good karma quota and treat lightly.