Let’s face it – most of you guys are pretty much outta here, and I myself am planning on taking Friday off. So for whoever is still left I’ll throw out a few juicy pre-Memorial Day freebies. Caveat – unless they start moving in the coming few hours I recommend you wrap them up or put your stop at break/even.
Spoos – if you still find them near that stack of Net-ines then a long position may be in order. I’m long here 1/2R with a stop below the daily NLBL at 2113.25.
EUR/USD – ya’ll know I hate this trade but I’ll take it anyway. If that 25-day SMA gives way then we’ll probably retest the lows. Don’t think that’s happening just yet during the long weekend (yes, Forex will be trading Monday).
Wheat long near 515 with a stop below 510.
Soybeans – grabbing a long here with a stop below 936.5. It’s soft support really – 1/2R only.
Gold! Very speculative long position here – 1/4R only. On a drop below 1202 we’ll probably retest 1195.
That’s it – see you later this afternoon. Now keep it cool and frosty and don’t get too crazy playing the swings. Remember, we’re going to see increasingly diminishing participation starting today – not that we saw a lot of it yesterday, except for that fake out spike to the upside.
You are not paranoid – they ARE out to get ya – watch your six!
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.
I’ve said it many times before and I’ll say it again – I love using the Zero. To my knowledge no other indicator shows you true participation on the E-Mini futures like the Zero does it. Today’s a great example – you recall I was long near ES 2121.75 with a stop a few ticks below 2120. In retrospect a teeny bit too tight.
Then this happened – my stop got snagged by just one tick. Bastages! Time to get short, according to plan, right? Well, not so fast…
Fortunately I looked at the Zero first. If there ever was a divergent signal this was one – non existent participation on the way down. I got back in – a bit late at 2122 but so far it seems to be working out just fine although I’m expecting a VWAP test shortly.
Ditto on the NQ – except here I got in at 4498. My ISLs are now below each respective spike low.
This tune really has nothing to do with the topic except that it may scare your children. Which is exactly what we call dips like these accompanied by a complete lack of participation. My policy in these cases is to wait for a strong snapback but not too late to jump back in (e.g. above a major NLBL, SMA, Bollinger, etc.).
If you got swiped today then you may be interested in signing up for the Zero. I have people following it religiously for nearly eight years now for a reason. But don’t take my word for it – I welcome any Zero sub to chime in here in the comment section. Tell us how you fared today!
Update 4:33pm EDT:
That was quite a reversal and after some short lived paper profits I got taken out at break/even (I was actually having dinner or I may have squeezed out a handle or two). Unfortunately things happened way too quickly near the highs although we did get a Mole reversal arrow. I did expect a VWAP test (see above) but things went back to flat.
Which goes to show that the Zero can help you traverse rough waters but it’s not the Holy Grail – sometimes the tape simply runs off and it would be unrealistic to assume that you manage to make the correct conclusion if things turn on a dime – which they clearly did here today. Moving forward I would strongly discourage you from playing the spoos with anything but negligible position sizes (i.e. lottery tickets) as we are now heading into the final two sessions preceding a Memorial Day weekend. Which means more bi-directional tape banging like this and it will be easy to have even your best placed stop run over.
In general equities keep traversing a very difficult market environment. Any directional progress (to either side) happens in sudden bursts after days or weeks of sideways churn. Only to be followed by more sideways churn or FU sessions like today. Not to sound like a broken record but I caution you guys to continue taking very small position sizes, if you should decide to play the swings (that means you Skynard!). Although the bulls continue to dominate this is transforming itself into a very different market than what you have become used to over the past six years. Stay on your toes…
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.
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.
Nice activity this morning which presents us with nice entry opportunities. Time to get busy! Here are the spoos which have descended a bit over night and are now approaching the 100-hour SMA. I think a long near 2121.75 with a stop below 2120 has merit. If that one goes then we probably drop to 2113.25 or lower.
Similar pattern on the NQ and you can spread your exposure between those two.
EUR/USD – liking the sell off at the ATM but from a trading perspective we are approaching the last line of defense which IMO is the 25-day SMA near 1.10862. I’m trying a long if we breach 1.11.51 with a stop still to be determined – need to see the next spike low or NLSL.
Gold – long near the 25-hour with a stop below 1202.7. That was quite a slap down! Let’s see if it can recover or if we’re back in sideways mode. FWIW – boy the June contract has been a crap period for traders.
Quite a bit more waiting 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!
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