Setups Deluxe

Not a very interesting day on the equities side unless you enjoy playing the swings, in which case the sideways range on the E-Mini for instance offered quite some opportunity for jumping in and out. It’s the sort of day when the Zero really shines and not surprisingly it painted a pretty juicy Mole reversal signal during the mid day stab lower – plus note a very distinct signal divergence during the highs:

2015-03-01_zero

However what really caught my attention is the repeating pattern that its presenting itself on the hourly Zero panel (the lower panel). It’s starting to look like a heart beat and since it represents participation to the up/down side my conclusion is that buy/sell programs are bouncing the ball back/forth here. I looked around for signs of distribution or divergences on the momo side but still see very little.

2015-03-02_UVOL_DVOL

My UVOL/DVOL panel seems to support that notion as both lines are almost in perfect sync and are steadily rising – easy as she goes. Again, great day for swing traders, everyone else be nimble and be long near today’s lows and short near the highs (unless we breach above ES 2015 – see charts below).

2015-03-02_spoos_volume_hole

The E-Mini volume profile shows us a pretty deep volume hole at 2010 which now has been touched 2 1/2 times (the first one missed it by a tick or two). So that should serve as an inflection point moving forward – on the upside we have a ceiling near 2015.

2015-03-02_spoos_update

Which also is represented by a NLBL at 2014.75 – a breach above that by a tick or two and we are probably off to the races for another stab higher.

2015-03-02_USDCAD_triangle_setup

But I promised setups and am happy to deliver as we’ve got a ton today, especially on the futures side. But first Forex – here’s the USD/CAD which is painting a descending triangle formation. Now the odds for a breach higher is pretty low – I think we are talking like 15% or so. Which affects your position sizing – your odds of success are low but accordingly your pay off is high as many traditional chartists will expect a break down lower here – perhaps after a fake out spike higher. Sure, may happen, but every once in a while it just keeps running higher and burns the shorts in the process. Therefore my plan is to add 1/4R on a breach of 125.5 and another 1/4R on a breach above 1.266 – give/take a few ticks. 1/2R total with a stop below the 25-day SMA.

2015-03-02_cocoa_setup

Cocoa – very nice formation here and I’ll be long above today’s hammer with a stop below the NLSL (you can also use today’s low as usual).

Quite a bit more below the fold – please join me in the lair:


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.

Cheers,

Kicking The Ball Around

Absolutely no participation today which was pretty clear about an hour or so into the session. We are still near the bullish inflection point with no resolution in sight. And I’m still in my OTM SPY puts but also long the NQ via Thor – so I need a big move here to be flashing some green.

2015-02-10_zero

Here’s today’s tape courtesy of the Zero indicator – extremely small signal range here today as well as yesterday. The hourly panel reflects just that and the current formation is a bit ambivalent. But the take away message here is to not fall in love with a direction or an opinion. Limited participation like this encourages monkey business – i.e. intra-day volatility and stop runs.

2015-02-10_AUDJPY_setup

Meanwhile I have been trying to stay productive on the forex and futures side – AUD/JPY was one of this morning’s setups and I still think it could bust higher here. On the daily you’ll see that there’s a seller below 93. If it can work its way higher than I think it’s good until 94+.

2015-02-10_coffee_setup

Coffee is attempting to find a foothold here near 159 – I took an experimental 1/4R long here with a stop below 158.8.

A few more setups below the fold – please join me in the lair:


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.

Cheers,

Busy Tuesday 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.

2015-02-10_spoos_briefing

It seems ES 2040 is now established as a short term support zone and we should use it if there’s a retest today. Thor actually went long the NQ this morning and although I’m a bit worried about the small candle range (stop below yesterday’s low at 4201.25) it’s looking okay right now.

2015-02-10_AUDJPY_briefing

We have a ton of futures setups this morning – AUD/JPY is our only one in forex. Frankly I love this one as it has excellent context on the daily panel. Long here above the NLBL with a stop below 92.4, or below 92.2 if you want to play it more conservatively.

2015-02-10_platinum_briefing

On to the futures – platinum looks like a good short here with a stop above 1220. Above it I want to be long with a stop below 1217.


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


    Darth Mole Alerts

  1. poll

    • How many discretionary trades to you place per month?



      view results

      Loading ... Loading ...


  2. NinjaTrader
    Kinetick

    search warrant



  3. recent misdeeds

    1. Must Play Monday
    2. Trend or Range
    3. Mexican Murpy
    4. Double Top Increases In Probability
    5. Terminal Phase
    6. Trading The House Down
    7. Easy Prey
    8. Everything Must GO!
    9. Sons Of The Lair
    10. Bounce It