Don’t even get me started on all the drama on the equities side – I had an inkling there would be a shake out but all this uncertainty seems to have completely derailed this year’s Santa Rally. Turns out the market doesn’t much favor the prospect of a potential economic melt-down – who would have thought? Certainly not our esteemed elected representatives in Congress. There is little edge in picking sides in equities over the next few days – the name of the game is volatility and it’s almost impossible to predict which way the whip will be cracking. Best to stay out and focus on other markets.
As you know I’m taking a few days off so allow me to breeze through a few setups I was able to dip up today. Besides I promised Mrs. Evil to not look at any charts and if I get caught I’m in a world of hurt. Here’s copper which is looking very juicy as it’s just reversed through its 100-day SMA (which is still rising). A pop above the 25-hour right above would be my signal to grab a few longs here.
Crude also looking irresistible as it’s above its 100-day SMA and may just pop above that diagonal resistance line it has been painting for the past month. I guess you know what I’m thinking – long with a stop below the SMA – confirmation is at 92. You can of course wait until the diagonal gives way – all depends on your style and risk tolerance. I would not think about a short unless it drops back below the 100-day again.
Two more for my intrepid subs:
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This entry was posted on Wednesday, December 26th, 2012 at 2:14 pm. Both comments and pings are currently closed.