I was staring at the E-Mini futures this morning – it must have been almost ten minutes just pondering and trying to figure out what was bothering me so much about this chart. And then suddenly I realized what was going on – and what also became apparent was that, no matter how long you are in the game, the tape still can always pull one over on you. The mighty Mole is not immune.


So the big epiphany I speak of was that nothing really has changed, folks. Remember all the sideways crap we endured for most of this year? And then suddenly we got a big slide (almost) out of nowhere – which we actually played quite well, but I digress. What I’m talking about is the collective assumption we are all suffering from right now: that of an impending RESOLUTION.

Think about it – most of the bulls are most likely seeing this as a prime buying opportunity. Fear and blood in the streets and all. The bears are waking up from their seven year hibernation and are also smelling the blood. They don’t trust it just yet – once bitten twice shy – 100 times bitten and you’re comatose. What they all share in common is a sign that one side or the other is losing its grip, that the stalemate is over and that one side is running for the hills.

I’m not saying that it is wrong to expect the potential for resolution but I also realize that the timing of it could be outside your trading horizon. It could happen today or it could happen three months down the line after NYE – perhaps mid January. Retail put holders would very much enjoy that scenario, right? Exactly – theta burn is a bitch, as they say.

My point here is not that we should not take any action. What I’m saying is that we need to pick our exposure points very carefully. For all we know we could be pushing sideways here for weeks and months to come. Which means NOT chasing the tape – selling major highs and buying major lows when price action paired with diverging momentum permits it. Zero subs take notice here as it will be your very best friend in the weeks/months to come.


Bottom Line: This is prime tape for trapping retail rats en masse. You know our prime directive here: Fade the noise – watch the price action – strike when the odds are in your favor. So from now on before pressing that buy button ask yourself this: Do you think the odds are clearly in your favor?

Well, do you, punk?

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Furious And Furious Friday

We got movement people! And obviously I’m not talking about equities where we’re still spasmodically bouncing around in the same six month trading range. Booooring! Unless of course you are the evil lair’s official Swing Slayer and that coveted title is already taken by Skynard. You will have to defeat him first and then send me one of his digits to assume his position. It also helps if you either have at least one dragon or an army of White Walkers at your disposal. Either that or just send me money – I am surprisingly corruptible.


Okay, let’s get the tedious charts out of the way first. Equities – I’m risking a tiny long position if it touches 2095 with a stop below 2090.


Alright so I was talking about movement, remember? Plenty of that across the softs in recent days (i.e. corn, soy, wheat, etc.) – you guys really need to get yourself some futures accounts. Speaking of which, do you still remember the soybean diet I pimped the other day? Soybean oil has advanced beautifully and I’m now putting my stop below a recent spike low. I think that one has potential to go all the way.


On the actual soybeans contract it’s time to head for the hills after a beautiful stab higher. Sure it could push even further but my target has been hit and that’s that. I’ll keep an eye on it however for new entry opportunities – preferably after a little shake out.


GBPCAD – fascinating formation on the daily – rarely seen anything like that on the forex side. I’m happy to play the swings here just for fun but I reckon that it’ll be ready to pick a direction early next week. Be careful usually you’ll see a fake breach first – if you are really good at this game then you can try to play the fake breach with an inverse position. Paging Skynard the Swing Slayer!

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You have been briefed – now have fun but keep it frosty. If there’s anything interesting to share (and if I see you guys actually showing up – I know it’s summer… yuk) then I’ll see you guys later this afternoon.


Campaign Updates

I’ve accumulated a good number of positions over the past week and decided to not take on anything more for the day. We still haven’t really taken off across major indices and in line with my adjusted modus operandi of remaining nimble I don’t want to get over exposed. So let’s do a quick run down of some of our recent victims:


The spoos thus far are looking good to go and I’m moving my stop to 2112 now which is at break/even.


AUD/USD – that’s a campaign I’ve been holding since last week. It somehow rolled over nail or something as it went completely flat and rolled back to the downside. Stop out at my trailing stop for a humble 1R profit.


AUD/CAD – boy that was an awesome entry this morning right before it took off like a rocket. Moving my stop to break even and will hold through the RBA minutes in about seven hours.


EUR/CAD – also one from this morning. I say meh here and this one may actually stop out. I love the formation on the daily but it was probably too early to try a long position. I only have 1/3R in this one so I’m holding it.


EUR/GBP – stopped out of this morning’s ST position. The original entry form last week is still good and my stop remains at break even. Not really loving the mojo on this one to be honest but I’m holding it.


Cable – a few more pips to the downside and I’ll be out of that one. I was hoping for a LKGB here but it kept dropping below the 100-hour SMA. Bummer really as this is a great setup and I would take it every single time. Perhaps we’ll get another chance at the daily NLSL further below.


USD/CHF – awesome entry here this morning and I’m moving my stop to break even.


Wheat – for some reason this one screamed continuation at me this morning. Very few traders would have taken a long after that long candle last week. Great entry and I’m obviously holding it although I’m pretty sure there will be a LKGB retest of the 100-day. Moving my stop to break/even and Bob’s my uncle.

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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