Kitchen Sink Monday

Folks, roll up your sleeves, grab your favorite morning beverage, and prepare to get busy. For whatever reason the market is throwing everything but the kitchen sink at us this morning. Let’s review the equities side first and then dive right in. Ready – set – go!

2014-10-27_spoos_overview

Things are looking good here – the last hurdle here remains to be the 100-day SMA and if it can be breached this week then I see little in the way of taking out that weekly NLBL on the right panel. If you’re wondering, yes I’m still holding those long positions.

2014-10-27_spoos_hourly

What I really like on the hourly panel is the 25-hour which is clearly being observed. There was an attempt to breach it but it failed right at the lower 25-hour BB. We are now starting to accumulate ST context below and that’s positive.

2014-10-27_EURGBP_briefing

Okay, on to the setups. EUR/GBP – I’m long here with a stop right below the diagonal (0.786). If stopped out I’m already set to be short with a stop above 0.788. Love this one.

2014-10-27_DX_briefing

The Dollar is approaching a convergence point between the 25-hour and 100-hour. I have to be long here until being stopped out at 85.5. Given the onslaught of excellent setups today I would not be short after that as I think there are better opportunities.

More below the fold – please meet me in the lair:


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Looks like this is going to be a fun week. Shake And Bake!!

Cheers,

Sitting This One Out

My apologies to Scott in advance but this is one of the rare times when our respective outlook differs. First up we are not at a crucial inflection point – the 2k level is simply an opportunity to shake out weak hands. If we dropped from here the downside potential would be rather limited as I pointed out yesterday. So there is no reason to get all all excited here – wake me up if we drop through the 100-day SMA perhaps.

2014-09-09_spoos_update

It all started out with a little fun after a tickle of the 2k mark but due to equilibrium on the buy/sell side it has now turned into yet another limbo zone. Nothing really has changed as of right now – in essence you want to be:

  • Long nar 1990.
  • Short near 2010.
  • Long above 2011.
  • Short below 1989.

In all four scenarios your stop would be no more than a handle or two away. Although this seems rather tight it has the highest odds in the current market phase. Any reversals back inside ‘ye ole’ chop zone’ invariably draws us back toward the magic 2k mark. Today’s proposed entry would already have us back inside as we just touched 2k again (and then we dropped again…)

2014-09-09_zero

If you’re watching the Zero right now the situation couldn’t be any clearer. I keep seeing statements/complaints about this being difficult tape and I completely disagree. It’s S.H.I.T. – absolutely – but it’s not hard to read at all. Today’s divergence on the Zero Lite should have gotten you out of any short positions you may have taken on.

In a nutshell: The downside potential here simply does not outweigh the whipsaw risk. EVEN IF we close below today’s lows today or below 1990 I would personally sit out any downside correction. Trading against the trend here is not worth the hassle. FYI – I’m posting this at 2:33pm EDT as the spoos are back at 1991 – which now has me long with a stop at 1989.

2014-09-09_EURCAD_update

Update on our EUR/CAD campaign – hey, it’s actually getting its groove on. Better to be lucky than good I guess. I’m not going to touch this one – as the old saying goes – if it ain’t broken don’t fix it. Next stop is either my ISL or I’m moving it up to 1R.

2014-09-09_ZN_update

Update also on the bond campaign – I got stopped out and immediately flipped for a short position. My stop is now above 124’3 which ought to suffice to weather out an obligatory LKGB move.

I have some very nice setups waiting below the fold – please meet me in the lair:


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Have fun but keep it frosty. FYI – I would love to see a few charts in the comment section.

Cheers,

Fun With Forex

Equities are doing their thing and I’ve been entertaining myself otherwise. This morning I proposed two speculative entries, one of which may actually turn into something interesting. Let’s take a look:

2014-09-08_EURCAD

The symbols were EUR/USD and EUR/CAD – the former dropped lower (much to my joy – see the DX) and the latter is climbing higher. Now this may just be a one day affair but given the formations on the daily and weekly (2nd and 3rd panel) we could be on to something. Which is why I’m converting this into a daily campaign now.

2014-09-08_USDZAR_setup

USD/ZAR – I had my eye on this sucker hoping it would push back into that 10.8 zone – wish granted! I’m now short with a stop above 10.84. No long play if I’m stopped out – that 25-week BB is too close for comfort.

Only one setup for the subs tonight BUT it’s a super juicy one – not to be missed! Please step into my 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,




    Zero Indicator


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