Welcome Back!

Welcome back to fun house! I trust you all enjoyed a fabulous time with your friends and families or simply enjoyed kicking back for a few days. Mrs. Evil and I wound up watching two entire seasons of Homeland and now we are hooked! So judging by the comment stream some of you guys were starting to get a bit bored. About time the markets re-opened again before things got out of control ;-)

2014-12-29_spoos_briefing

Unfortunately not much is going on just yet. Across equities the holiday snooze has squeezed those hourly Bollingers to the max and I expect a bit of acceleration here today or tomorrow. No great entry opportunities as of right now as we have little context. One could make a case for trading a 100-hr BB breach in either direction but it’s weak. Hopefully today’s session will provide us with something to work with.

2014-12-29_GBPJPY_briefing

GBP/JPY also quite compressed (like many others – it’s not isolated on the forex front) and here I am willing to throw 1/2R into a long with a stop below 187. May take a while before we see some movement though. Slow beginnings indeed…


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That’s all for right now – let’s hope something starts moving after the bell.

Cheers,

Better Not Fighting This…

Massive jump off the lows. I expected a little courtesy shake out this morning but the bots had other plans and immediately boarded the express elevator to the upside. Loving this tape although my damn lottery tickets got shaken out right near the lows. Hey you can’t win ‘em all – but you can try.

north_korean_hackers

So word has it North Korea hacked their way into Sony Pictures in response to a planned release of the tongue-in-cheek comedy ‘The Interview’. Guess shit just got real for James Franco.

So let me be the first to extend my sincere thanks to Kim Jong-un for sparing us yet another James Franco movie. Also, the whole situation gave me a great idea. Why waste your time hacking movie studios – that’s so 20th century. Instead turn those hackers into stone cold stone stock traders and sell the hell out of Sony stock! Much more effective long term – oh, and legal. (Kim Jong-un – call me!!)

2014-12-18_ES_update

Alright so here’s where we’re at. The spoos sliced through that first NLBL like hot butter. The next one at 2049.5 is where the rubber really meets the road. As you can see we’re right at the 25-day SMA and if we closed above it then I think 2050 is most likely in the cards. I really hope nobody is still short equities – jumps like these may find post corrections but usually (i.e. 80% of the time +) resolve higher in the weeks that follow.

See, Boosie’s got you covered.

2014-12-18_corn_setup

Now on to the setups – we have good stuff here tonight. Corn is looking good and I tweeted about it earlier today – did I really just say tweeted – we are all doomed. Anyway, nice price action suggesting that we either fail right here or there’ll be a jump and massive stop run higher. I’m short right now but am hoping for an opportunity to hop on the long bus.

My favorite setup today however is the CAD/CHF – super dreamy:


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Cheers,

How To Slow Grind

Just yesterday I talked about what I consider two dirty words in my trading vocabulary – overbought and oversold. A few people chimed in; Scott was among them and he pointed out that both concepts can be useful in sideways markets. I thought about that and on the surface it makes sense – after all I have written about various market periods extensively in my time. Sideways market behave differently than trending periods. However in the end I must still respectfully disagree as we would be comparing apples with oranges.

Clearly once a sideways market has been recognized few are going to point at a touch of the upper channel and say ‘boy oh boy – this market is overbought’. You play the swings – sure – forces are in equilibrium within a contained range. BTW, even in those situations people get screwed because quite often they expect more of the same and suddenly find themselves in a first rip of a rocket. Ooops…

In any case – the terms ‘overbought’ and ‘oversold’ are used over and over without care and for some reason you encounter them most often during strongly trending tape (i.e. short and long squeezes). Like some cat who showed up yesterday with his fancy RSI/stochastic/MACD combo chart which he thought was handed to him by the good Lord himself. Problem is – all these momo indicators can wind up embedded all the time. And poor retail schmucks find themselves trapped after attempting to trade against a strongly trending market. Don’t be that guy!

2014-11-11_spoos_update

And almost as to prove my point the tape continues its slow grind higher, marking new highs on the way almost each session now. It may embark on a correction tomorrow or by next March – who knows?? What I do know is that my long campaign has now produced a stunning 13R and I’m starting to move my stop a big closer. That NLSL at 2,020.5 ought to do fine. If I get taken out there I don’t think they’ll find me calling the Spanish suicide watch hotline.

2014-11-11_USDJPY_update

Update on yesterday’s USD/JPY campaign – that’s a good start and as we’ve touched 1R we’re now moving our stop to the break/even point. Nothing else to do right now.

2014-11-11_EURCAD_setup

New setup on EUR/CAD – I think a long above today’s high is permissible if it closes as a second hammer in a row. I plan to put my stop below that NLSL at 1.4058.

A few more goodies 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.

And if you’re not trading right now (which is the majority apparently judging by the comment stream) then you may as well learn something useful:

Now personally I’m more of a merengue person (and you can’t beat practicing with a hot latina). In any case I hope your partner is a little less bossy than this gal – daaammnn!!

Cheers,




    Zero Indicator


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