The Bots Are Back!

The bots are ba-aaack! And it was about time as my crew here was getting bored out their minds. So with a bit of luck and scotch tape we may be on route for our ill-deserved annual Santa Rally. Let me get you guys up to speed:

2014-11-20_UVOL

Exhibit A: Today’s UVOL/DVOL plots - in particular the early morning gap & ramp was run like clockwork and that green UVOL curve is via some damn Mathematica function. I for one welcome our new old robot overlords!!

2014-11-20_SPX_Zero

Exhibit B: The Zero panel shows marginal participation but the morning buying frenzy was perfectly timed and apparently triggered a few dominos. That’s how it’s done, steel rats! If nothing else remember this chart for posterity - file it under ‘shot term bear traps 101′.

2014-11-20_hanmer_time

As of right now it’s looking pretty bullish here and if Thor hadn’t died and come back as a woman (damn you Stan Lee!!) he would be all over that bag of hammers on the spoos. If it ain’t broken don’t fix it – meaning until further notice my stop for my long positions remains near 2028.

It’s been pretty thin on the setup side this week – today I was only able to find one measly chart. And sorry folks – I got to keep that one for my intrepid subs. So if you got a secret decoder ring then 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.

See you guys tomorrow.

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,

I Robot

Make no mistake – very few humans are actively involved here. The comment section looks pretty deserted today (short of tumble weeds passing through) and it’s one of many signs that anyone with a pulse feels pretty exhausted at the end of this week. Of course the market Mole knows no mercy and here are a few more charts for you stragglers before I send you off into a well deserved weekend:

2014-10-17_UVOL

Seems to me that the bots are driving this – they have on the way down and although there was a bit confusion regarding the script yesterday they’re back today in full force. I don’t know if they are scaling in our out there but thus far the mojo I’m seeing on the Zero leaves much to be desired:

2014-10-17_zero

I don’t think you need to be an expert chartist to see what I mean. Pretty solid divergence there almost since the open and we keep meandering downward. Could be a trap of course but silly games will not save this quarter, so if the bull wants turkey for Christmas he’s got to get a move on. If this divergence holds we may just slip away late in the session, but let’s see – it’s Friday evening, everyone’s gone and the bots are having a field day with it.

2014-10-17_VIX

The gaps I’m seeing on the VIX are not exactly confidence instilling either. As you can see we have dropped back to 22 and change but volatility of volatility continues to expand. Not a sign of a healthy market. Perhaps everyone was waiting for some scraps of hope from the ole’ Yeller today. By the way if you’re up for a good laugh then check out this little jewel - and I quote:

Federal Reserve Chair Janet Yellen on Friday expressed deep concern over widening economic inequality in the country and called for tackling issues such as early childhood education and encouraging entrepreneurship to help narrow the gap.

I almost blew over my old Apple Cinema display when I saw that, hilarious. Maybe that should have been a concern before we threw over a trillion dollars into the arms of our esteemed banksters. Don’t get me wrong – I appreciate cynicism at its finest but please – don’t insult the remains of my intelligence.

But I digress – if you want to know what makes equities tick I suggest you look at the short term panels which contain our best clues. Please join 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 now it’s time for me to attend to my [second] favorite Friday evening past time:

german_beer

Have a relaxing weekend – I’ll see you guys on Monday.

Cheers,




    Zero Indicator


    Darth Mole Alerts

  1. poll

    • What is your average spread on the EUR/USD?



      view results

      Loading ... Loading ...


  2. NinjaTrader
    Kinetick

    search warrant



  3. recent misdeeds

    1. Happy Turkey Slaughter!
    2. One Chart Says It All
    3. Monday Snooze
    4. Monday Morning Briefing
    5. The Slow Walk-Down
    6. It Keeps Going And Going And….
    7. The Bots Are Back!
    8. An Impending Trend Shift?
    9. Fade The Noise – Play The Game
    10. Tuesday Morning Briefing