When There’s Blood In The Streets

You surely have come across the old aphorism coined by the Baron Rothschield, an 18th century British nobleman and member of the ultra secretive and original one-percenter Rothschild banking family: When there’s blood in the streets – buy property.

2014-12-16_fear

However that does not mean you should blindly step underneath a falling sword. Either you know something nobody else knows (which is illegal but clearly was the modus operandi of 19th and 20th century tycoons), OR at minimum you need to see some technical context that justify jumping into some lottery tickets. Given the level of fear across various verticals today I set out to take advantage of the situation. And I did find three charts that tickled my fancy. One of which I’ll throw out for free:

2014-12-16_crude_setup

You probably guessed it – crude. Not much context here on the daily but we are dangerously close to the 50 mark and that’s where we also find the lower 100-month Bollinger. Will we see 48, 45, or even lower? I really don’t know but wipe outs like these are usually where I start looking for some short term context. I do like the hourly panel (very left) and have taken out an experimental 1/2R with a stop below today’s lows. Heck if I’m wrong we’ll be pumping gasoline for free by the end of the year!

FYI – in that context: Here in Spain gasoline prices have barely moved despite a drop of crude from 104 to 54 in a bit over a month. I can’t say that I understand all the dynamics of crude production and refineries but I do know when I’m being gipped.

Anyway, two more lottery tickets below the fold:


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Play these setups with only 2R combined max - if you want to be conservative reduce your exposure to 1R total. We are talking lottery tickets here people!

Cheers,

Another Profitable Week

There is simply no stopping this freight train – momo divergences be damned. But for some mysterious reason I continue to see people exerting a lot of energy on calling a top and worse – stepping in front of it. Although I do understand the underlying psychology behind it, I still fail to understand the purpose, as it rarely serves our trading results.

To make predictions is of course an inseparable part of human nature – the constant need to project forward into the future and to gauge the odds of what may happen next. It has helped us survive as hunters and gatherers during the past 100,000 years or so. But when it comes to predicting market direction these very instincts do not serve as at all, quite on the contrary – usually they do us in.

2014-12-05_spoos_update

I hate to keep pulling this rabbit out of my hat but few charts do a better job in visualizing the simplicity and benefit of simply letting market forces run their course, especially during rocket periods. My ES campaign has now reached the 14R mark and I continue to trail the action via each new emerging spike low.

2014-12-05_UVOL_DVOL

Clearly the buy bots are back in the game as is easily discernible by monitoring the NYSE UVOL/DVOL plots.

2014-12-05_wheat_setup

The only discretionary setup I’m interested in right now is wheat which is painting a beautiful hammer. Look at the panel on the very left – looks pretty ‘top heavy’, doesn’t it? Well, don’t let it fool you as these types of conditions can easily turn into massive short squeezes. The odds here are pretty mixed – 50/50. But if it gets going even 1/2R exposure can turn into very profitable campaign. So keep an eye on this one starting Sunday night.

I’m well exposed and among some discretionary trades I have a few ongoing campaigns running on Thor – plus CrazyIvan has been trading the house down again this week. For some reason participation here has been rather low, which is disappointing as we’ve been banking coin like bosses over the past few weeks.

But I guess that is part of the game – not everyone is wired for success. Many try their luck but only few succeed in realizing their dreams. In the words of the venerable Vince Lombardi:

lombardi

“The difference between a successful person and others is not a lack of strength, not a lack of knowledge, but rather a lack of will.”

Enjoy your weekend.

It’s not too late – learn how to consistently bank coin without news, drama, and all the misinformation. If you are interested in becoming a subscriber then don’t waste time and sign up here. The Zero indicator service also offers access to all Gold posts, so you actually get double the bang for your buck.

 

Monday Morning Briefing

Welcome to our morning briefing. Here we are reviewing short term setups ahead of the NYSE opening bell. If you are a scalper or swing trader then these setups may be of interest to you. As usual keep in mind that these are short term setups although they could be used as early entries for more longer term positions.

2014-11-24_spoos_briefing

Equities have been holding the line over the weekend and we may see a bit of acceleration here as suggested by DarthMole. Just to reemphasize – unlike retail traders volatility measures do not suffer from directional bias. So there is no telling which way it’ll swing. However I don’t see anything on my charts that would prompt me to deviate from the current course, which is to trail my stop and to not second guess how far this puppy may run.

2014-11-24_USDZAR_briefing

USD/ZAR near its 100-hour SMA and I’m short here with a stop above 11.00. Only 1/2R exposure as there isn’t much supporting context.

2014-11-24_wheat_briefing

Many futures contracts rolled over last Friday and the pickings are slim but wheat is looking rather interesting here as support is starting to stack up. I’m long with a stop below the NLSL at 553.25.

Two more short term setups below the fold:


More charts and 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 subscriber you get free access to all Gold posts, which gives you double the bang for your buck!

Please login or subscribe here to see the remainder of this post.

You have been briefed – now have fun but keep it frosty. See you guys later this afternoon.

Cheers,




    Zero Indicator


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  3. recent misdeeds

    1. Freaky Forex Friday
    2. Better Not Fighting This…
    3. The Squeeze Is On!
    4. Post Fed Musings
    5. Strap On Your Helmets
    6. When There’s Blood In The Streets
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