Swiss Only Learn The Hard Way

If you just woke up and found your Forex account in flames then let me give you the skinny. The Swiss National Bank finally realized the errors of their currency pegging ways and decided to suddenly throw in the towel. Which of course triggered a massive dislocation across Forex markets as the Swiss Franc surged by 30pc. As I’m typing this the Swiss stock exchange is a sea of red dropping as much as 14%. Well done!


Now when I was a young kid traveling in Europe a Swiss train conductor kicked me out of the train in the middle of nowhere somewhere in the hinterlands of rural Italy because I couldn’t afford a pass for the sleep wagons (there were only sleep wagons on that train). Since that day I can’t stand the Swiss and for good reason. They are stubborn as heck and they only learn the hard way. And that’s coming from someone who actually went to Kindergarten there! I hope the SMI gets cut in half you cow tipping alphorn blowing wankers.


So let’s observe the damage. Here’s the EUR/USD – dropped toward 1.15 and has recovered a bit of that first wipeout. Word has it that the Swiss will now have to sell a ton of Euros (at massive losses) and that probably means more downside on that front.


Is that an ugly chart or what? EUR/CHF – back from whence we came back in 2011 when they screwed with everyone the first time around.


Dollar got kicked in the head and then in the balls. I don’t recommend you pick any direction here at this point – let it settle down.


U.S. equities rather tranquil in comparison. But look at all that volatility over the past few sessions. So far that support cluster appears to be holding however – the onus is now on the bears to take it lower. Today. If they can’t drag this sucker lower on a day like this they’re toast (again).


Gold update – jumped higher as should be expected. My entry at 2012 is starting to look solid now.


Crude is taking advantage of all the confusion and is trying to make a run for it – the 50 mark is in its sights. This would be a long/buy if it breaks the daily NLBL.

A few juicy setups below the fold – meet me in the lair:

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


Fade The Noise – Play The Game

I’m just loving life today. The weather in VLC was sunny and warm and I just came back from literally ripping up my gym. Once back at the lair I checked back into the matrix and found my account glowing bright green – again. It’s becoming a filthy habit and I should watch my six as this game should not be that easy. But in the end, if you fade the noise it all just comes down to this, right?

But let’s recap for a moment, starting with our daily campaign which we, if memory serves me right, embarked on in the early morning of October 20th. T’was a good day as it was a brief opportunity to catch a ride on the ensuing rip tide.


Early morning entries – my favorites in the past few weeks – I got filled near 1872.25 and I’m now counting 12R. My apologies for misreporting this earlier – I thought I was up to 13 but it’s ‘only’ 12. What I enjoyed the most in the past few days was all the chatter about non-confirmation and how a week of sideways tape and non-confirmation across indexes surely meant that we were about to correct massively. Yes, maybe – and maybe not – nobody really had a clue and people were literally pulling fancy charts out of their asses.

Today’s reward belongs to the few remaining strong hands who didn’t flinch and relied on their trailing stops to do the heavy lifting for them (take a hint). I told you guys that I’m going to ride this trend all the friggin’ way and I was not kidding. Let’s see how far we can stretch this Armstrong… If you must know - my new stop is now been advanced to the recent spike low near 2028.

Moral Of The Story:



But it gets worse…


NQ futures – one of the setups I posted in our early morning briefing. Of course nobody took it (cough cough – again – cough) but I always said that it’s lonely at the top (and the bottom). PICTURE PERFECT entry this morning and I should be charging for this stuff – oh wait – I am… My stop WAS at break/even but since it’s busted higher I have moved it to the recent spike low near 4328.


I only have one new setup today and it’s a super extralishious experimental one on the EUR/CHF. We are scraping the bottom of the barrel here and since I’ve got risk capital to spend I’m taking 1/2R here with a stop at 1.999. Most likely they’ll run it but heck – I have been Lucky Luke lately. Not much else to do – either she bounces with a vengeance or the Swiss may have to start yodeling about a re-peg again.

Where Have You All Been?

If I may ask – inquiring minds would like to know why the majority of you rats have been completely missing out on the past few weeks of market action. It was hopping here while we corrected downward but it seems a good number of you guys seem to suffer from a chronic bout of directional bias. Hey, it’s all the same to me – but it would be a bit more fun if some of you were trading along. Just saying… plus I do post here for a reason ;-)


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.


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!


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.


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.


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.


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:

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.

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


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