I’m rather thrilled that despite the recent gyrations in equities we stayed focused and managed to remain on the right side of the tape. We didn’t get trapped at the top and we didn’t get squeezed at the bottom – and that probably puts us into a pretty exclusive club (yes, secret handshake and all). So far so good and after our RTV Buy signal (which gave us a little scare late in the session yesterday) we are finally inching forward in the right direction. However, let’s not get complacent, as we are not out of the woods just yet:
The next and final hurdle is 3004 on the continuous NQ contract – if you use September the NLBL is placed at 2,997.75. However, I believe that for our purposes it is best to use the continuous contract.
On the spoos we are looking at a 1648.5 NLBL standing in the way of a squeeze higher.
By the way there was some talk about a VIX Buy signal yesterday and let me assure you that nothing could be further from the truth as the VIX closed above the Friday close on Monday. Please revisit the rules on the cheat sheet if there is any confusion.
Corn has managed to gyrate itself higher and meet up with its 100-day SMA. At the same time it’s now encountering upside resistance via the 25-w and 100-w SMAs. So I think this is not a bad place to be short until about 682.
EUR/CHF – yesterday’s RTV Buy is still active but is now questioned by an inside period. Per the rules a short trigger tomorrow would close out the long position and put us into a short. Frankly I’m not too eager to get into a short as we’re still sitting on top of the 25-week SMA. But if we push below that a short position might just drop us into the 100-week SMA.
GBP/JPY finding support at the 100-day SMA as well as the 25-week SMA.
USD/CAD testing its daily NLBL – as you can see it already touched its 25-week SMA and I think a push above 1.0216 would declare the previous SMA breach as failed and trigger a long signal.
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