Under The Weather

So I was starting to feel better on Saturday when I made the mistake to head to the gym and hit it hard. I started to feel super exhausted on Sunday morning and woke up today with a cold. As you can imagine I’m pretty miffed about myself – it was supposed to rain Sunday and Monday (and it did), which is why tested my luck and went to the gym in the first place. Did I ever mention I absolutely loath winter?

2014-12-15_spoos_briefing

It’s funny how the bears are always pining for massive corrections which they most of the time are unable to participate in. It’s not just that large scale corrections only happen perhaps 5% of the time – it’s also that they are extremely difficult to ride out. Just look at the gyrations on our hourly chart. Up – down – up – down. Almost every retracement is recovered and stops are run in both directions. This is usually how it goes except for the big (third wave – cough cough) wipe out somewhere in the middle.

Right now the spoos are at the 25-hour which only represents soft resistance. However if you are looking for a good place to be short then this is probably as good as it’ll get. If equities continue higher from here then we are looking at a much more complex formation and who knows how the rest of December is going to flow. The second hurdle is obviously the 100-hour at around 2025. So these are the two inflection points right now: 2010 and if that goes 2025.

2014-12-15_DX_briefing

The Dollar is looking weak this morning and I grabbed a tiny short position here with a stop at 88.9. The reason why I’m risking it is because of what I’m seeing on the Euro:


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Cheers,

Wrapping Up The Month

As usual October has been a pretty capricious month and there wasn’t a dry eye left in the house. Tomorrow will be its last trading session but since Sunday is Halloween I don’t expect much activity. So let’s take a quick look at where we are on some of the most salient charts:

2014-10-30_EURO_monthly

The most ominous chart right now must be the Euro. We finished September near the lower Bollinger and it looks like we will be doing so again. What’s worse most likely it will be a shooting star and a drop below 1.25 may actually lead us toward the 1.2 mark. Frankly that was on my Christmas list last year and it’s about time Santa delivers! For the noobs – I’m a U.S. expat living in Europe – you do the math.

2014-10-30_ES_monthly

Pretty much the inverse situation in equities. This is one of the longest hammer candles I can remember (only challenged by the July 2011 candle) and it has reversed a whole cluster of Net-Line Sell Levels (NLSL). Very very positive and we may be scraping new highs by the end of the year.

2014-10-30_spoos_update

A quick peek at the daily and weekly panels. Nice formation here on the daily (left) side and although we are overdue for a little correction I think we may close the week above the NLBL I highlighted. That would be our first weekly buy signal in a while. With a bit of luck, effort, and some scotch tape we may be ready to roll into Santa season. Frankly a little shake out beforehand would actually be healthy and shake out some of the late comers.

But the best chart today I will have to reserve for my intrepid subs – we are most likely near one of the best monthly buying opportunities of the year:


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.

Bonus Chart:

2014-10-30_zero

Nice bearish divergence today on the Zero Light.

Cheers,

Getting Paid On Thursday

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.

2014-10-30_spoos_briefing

Equities have dropped a little lower overnight and we’re now testing the 100-hour SMA. If I wasn’t long already in my ongoing campaign I would be here with a stop below ~1958. If supports fails then the next probable scenario is a visit of the lower 100-hour BB which coincides with NLSL at 1944.5.

2014-10-30_spoos_briefing2

Here’s another view at the scenario on the hourly panel – the onus is now on the bulls to keep up the pace or we run the risk of a little correction.

2014-10-30_platinum_profits

Platinum was one of our short setups from last night and it’s been very favorable so far. Time to move your stop to b/e and to take 50% off the table.

2014-10-30_silver_profits

Silver was the second one and here I’m moving my stop to 1.2R and also take 50% off the table. After such a drop odds are we’re going to see a little counter response.

2014-10-30_AUDNZD_setup

My only setup this morning so I’ll throw it out for free – AUD/NZD. Possible buy here at the NLSL with a stop pretty nearby below 1.124 (the rising SMA). Time for this one to get a move on, so I’ll give it three candles or so and if she doesn’t budge I’m out.

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.

Cheers,




    Zero Indicator


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