I’m Your Huckleberry

I’m sensing a possible inflection point across various market verticals this morning. Now if you ask me what I mean by ‘sensing’ and if I have completely lost my mind then I would respond with ‘divergences and assorted correlated price action’ to the former and ‘affirmative’ to the latter. Let’s just say that I’ll be bull’s huckleberry up here – but only until 2124.25 – my boldness comes with price limits.


All jokes aside – I’m a bit pressed for time this morning so let me walk you through my nefarious plan. Basically equities seem to be slowing down and are clearly diverging. The YM for instance is already pointing down while the NQ is still holding strong. This could of course mean nothing but the 25-hour BB is looking like a python at this point and is seamed by Net-Lines on the up and down side. All that represents a reasonable inflection point I plan to exploit:

  • I’m already short 1/2R with a stop above 2124.25.
  • If we drop below  2115 I’ll be adding 1/2R to my exposure.
  • If stopped out I’ll be long with a stop below the lower 25-hr BB to ride the final phase of the ongoing squeeze.

That’s very little risk with potentially high rewards. Just the way I like it.


AUD/CAD is also looking good and I think it’s a great short (didn’t mark that on my chart) and that’s my current position. UNTIL of course we push above that diagonal – which is when I plan to be long.

More goodies below the fold.

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Promising price action today and other setups may be developing – so get busy and let me know how you fare.


The Measure Of Mojo

The canary in the coal mine is happily whistling along and until further notice I recommend you continue to suppress any bearish aspirations. Of course I’m talking about the NQ futures which I yesterday elected to be our measure of bullish mojo. And so far I’m not seeing anything suggesting we’re halting here – yet.


In fact we are painting new highs which suggests we may retest but probably continue higher. It would take a reversal below the Net-Lines with multiple attempts to breach for me to consider taking on any short positions. However even if we drop back below during the session today we have Yellen on the roster and that gives us little wiggle room here and event risk may run the tape far beyond our stops. Not worth the risk IMO but I’m not your daddy.


The spoos is actually where I would have played this inflection point – they are weaker and still dangling off the lowest Net-Line Buy Level (NLBL). It’s worthwhile noting that the YM is also lagging the NQ. Which keeps the bearish scenario in the game for now but I still need to see the end of today’s session first. May be too late by then but as the old saying goes: Better wishing to be in a trade than wishing to be out of one.


USD/CAD is the only setup I kind of like today. It looks like it’s going to start trending here and very few people would take out long positions here. Except for the mighty Mole of course – 1/3R only though and I’ll add another 1/3 if it jumps higher.


Otherwise I’ll be sitting on my hands until Yellen is done shaking the tree around 10:00am Eastern. So let’s take stock of the situation then.

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Last Kiss Goodbye Candidate

I have precious little time this afternoon as I’m about to head out and meet two of my readers for drinks and dinner. They both happen to be in town and have requested my presence for some reason. I’m pretty sure I don’t owe any of them any money but will go armed to the teeth just in case.


I mentioned USD/CAD early this morning and just when I was about to strike it jumped higher. Actually that turned out to be a good thing as I’m now grabbing it on the retest. The only caveat here is that it’s knocking against a daily NLBL plus the upper 100-day SMA and we’re still below both of them. Which means I’ll only deploy 1/2R as it’s a bit of a lottery ticket.

You may have noticed that I seem to be using that word a lot lately. Which honestly bugs me as the occurrences of solid setups remain to be far and few between. I’ll strike some of that off to lousy summer tape but the recent volatility across the board has kept us locked in a sideways trading range from hell for months now. I hope we’ll see some type of resolution by fall – no matter in which direction – it’ll be better than this.

Alright I’m off – see you guys tomorrow morning.

The future is now – so don’t bring a knife to a raygun fight. If you are interested in becoming a Zero subscriber then don’t waste time and sign up here. A Zero subscription comes with full access to all Gold posts, so you actually get double the bang for your buck.


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