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Information Diet
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Information Diet

by The MoleJune 14, 2012

Due to popular request I decided to repost some of our old but timeless favorites. Clearly the fight against information overload never ceases and is becoming more prevalent as the world is becoming more connected every day. As traders we need to give special attention to not only what information we expose ourselves to but also how much of it (good or bad) we let in every day:

Today I would like to cover the concept of developing your personal information diet and turning your brain into one lean mean thinking machine.  The basic idea behind reducing your intake of information is nothing new and I first encountered it way back during my trend trading years. However, it is one thing for a trend trader to say that the news doesn’t matter and to limit one’s consumption. It it is another to consciously develop a systematic approach for consuming information and to extract only what is needed for arriving at high quality conclusions in the shortest amount of time.

As you can tell I have given the  subject matter much consideration and over time I have developed principles which have become core tenets of my trading career. I will try to share some of them with you today in the hopes that you may not only be able to incorporate some  of my ideas into your own trading activities but to how you process any information you encounter in general.

Tenet #1: Cui Bono

Latin for “To whose benefit?” – literally “as a benefit to whom?”. Over time I have learned one simple fact the hard way: Whenever anyone tells you anything it is for a reason. Either they want to impress you, manipulate you, extract information, or lead you a certain way (intellectually or emotionally). Whenever a person tells me anything it now has become my habit to immediately question the motive of the piece of information or inquiry I have received. Why is this person telling/asking me this and who benefits? Cui bono. By the way some of this is directly derived from Neuro Linguistic Programming (NLP)- once you understand how people or the media is trying to manipulate you it’s a lot easier to avoid mental traps. And even knowing how it works does not make your completely impervious.

Tenet #2: Less Is More

Flash back to 100 years ago when people only had to learn what they needed to know to survive. Information that was irrelevant to a person’s work and lifestyle was not needed, or readily available. But as time progressed, those who had the opportunity to expand their knowledge base were presented with greater prospects – and thus the quest for knowledge became a means of getting ahead.

Today we are exposed to tens of thousands of pieces of information each waking hour. The amount of data we consume has steadily increased over the last century and can be thought as an exponential curve that keeps pushing up hard. I believe we have long crossed the human brain’s ability to properly process and analyze all this data. Do you experience brain fog every once in a while? It may be partially related to your eating habits but most likely your brain is simply overloaded with all those tidbits you are trying to squeeze through it every day. We are simply not built to process this much information on a daily basis and there is much research that shows that the way our brains are wired and the way we perceive things are vastly different from that of our grandparents. Whether that is a good or bad things is up for debate – I think there may be good aspects but yet we should be careful about the flood of information we expose ourselves to.

Tenet #3: Embrace The Silence

Not only has the amount of information we consume increased exponentially – in my estimate the vast majority (i.e. 95% +) of what you encounter is completely useless. It does not help you succeed, it does not help you survive, and it does not educate you in any meaningful fashion. Even worse – quite a lot of it is actually harmful to your ability to arrive at a decision. Imagine a menu with 1000 dishes and 200 deserts. We all like options but that would clearly be overkill. Once you embrace an aggressive approach to consuming information it is rather easy and actually enjoyable to reduce your intake. I guess this implicitly correlates with Cui Bono and Less Is More. And again some of this is actually a product of studying NLP.

Tenet #4: What Everyone Knows Is Not Worth Knowing

Almost self explanatory I guess. If you really want to trade on information or then news then you obviously need to dig up something the rest of the schmucks are not privy of. And unless you work at Goldman odds are you are like the rest of us – out of the loop. That rule in itself will save you hours of reading every week. Why would any news item instantly accessible by hundreds of thousands of traders provide you with any trading advantage? Very doubtful and instead you should spend your time reading tutorials or books on trading.

Tenet #5: The Quality Of The Source

I might as well have called this one ‘Most People Talk Out Of Their Asses’ – and unfortunately this is the sad truth. Just go to your neighborhood bar and listen to type of crap that comes out of most people’s mouth about things they have no clue about. When someone tells you something – anything – always question the quality of the source. For instance someone is trying to give you trading advice then ask how long they have been trading and if they are profitable on a consistent basis. I know this sounds pretty basic but you would be surprised about how many purported ‘experts’ have little or not background in the subject matter they are advising you on.

I probably could go on but these five principles are really all you need in order to slowly start reprogramming your mind. Next time you come across a headline in the financial media the first question you should be asking yourself is: Why am I reading or hearing this? And by that I mean ‘what is the source’s motive of providing me with this information?’ Chances are it is not for you to be more profitable, most likely it is the exact opposite. Who is providing me with this information? Does this guy know what he’s talking about? And most of all – do I really need to waste my precious time absorbing this information?  Chances are you you can safely skip this one over and devote your time to more productive matters.

When it comes to trading the less is more principle is particularly important. Let me give you a concrete example. Yesterday was a crap session due to limbo tape and the pickings were slim. Rumors of QE3 and talk of Greek elections abound. However instead of wasting his time on trying to make sense of the tape or worrying about things out if his control the Mole simply stuck to his guns – which as you know are my charts. And among all the noise there was one juicy setup that wound up paying us in spates:

Natgas painted an inside day plus an NR4. I suggested an easy entry with little risk and the rest is history. Now, how much information was required to execute this trade? Almost nothing – all I knew were the rules and that there was a statistical edge. I did not read any news item about natgas and I had no clue it would punch up like this. The amount of time I spent on this trade including posting it to the subs was probably 3 minutes tops.

I strongly recommend you start developing your own information diet. What works for me most likely won’t work for you – it’s up to you to decide what is valuable and what is not. That is the beauty of your brain – you have complete control over what to do with your gray matter – no matter how high your IQ or your level of knowledge.

And as the saying goes – program your mind or someone else is going to do it for you 😉

 


About The Author
The Mole
Mole created Evil Speculator amidst the chaos of the financial crisis in early August of 2008. His vision for Evil Speculator is a refuge of reason, hands-on trading knowledge, and inspiration for traders of all ages and stripes. You can follow him and his nefarious schemes at various social media waterholes below.
  • tradem4alpha

    you have to give credit where credit is due…indeed the US markets are the most efficient on the planet…rapping EVERYONE…this move in the last 10 minutes is truly genius…pure genius

  • Schwerepunkt

    Crazy action, rumors rule . . . 

  • AMCabrera

    Mm dirty. Grabbed me at 1.2630 tsk tsk.

  • lnskrlssn

    Not a Zero sub? I was able to catch part of the move in SPX thanks to the zero. Got in on the third arrow when the slight divergence acourd and out 5 points higher. Just saying, I love this tool!

  • Schwerepunkt

    You gotta think a lot of stops were taken out, shorts got punked, but now the new shorts seem in control.

  • StrikeFirst

    I know this goes against everything in this post(which is brilliant, by the way), but I’m picking up a few lottery tickets to hold long over the weekend.

    I like the risk-to-reward.

    If I lose, it’s no big deal; if I win, I win big.

    I don’t think the PTB are ready to let the whole thing crash, and that the markets will rally hard.

    I believe the PTB have a little more raping and pillaging to do.

    Feel free to chastise me if you must.

  • ds2

    So funny.  Slapped down again!

  • MidLife

    Would be nice to be the feeder of these rumors – OMG. 

  • http://twitter.com/law6 law

    nice to kill them

  • Schwerepunkt

    Rumors of a coordinated circle-jerk. Video at eleven. Sheesh. that was like a drive-by shooting.

  • beentohardknocksU

    I ignored the little blue arrow as I had to head out for a few minutes.  I come back and we have exploded up; collapsed back and are just a bit above where we were when we started….

  • Fibz

    They’ll rape as long as the sheep are complacent. For hundreds of years it’s been corporations+govts vs people (ie. dutch east india company) no reason it would change now.

  • Schwerepunkt

    Yeah, could be the new shorts get punked as well. This tape is deadly. Mole is right. Best to stay out for now. Sunday night/Monday morning is going to be something to watch.

  • Skynard

    Hell ya, right their with ya:)

  • Skynard

    Best damn blue arrow so far!

  • http://practicalt.blogspot.com/ Darth_Gerb

    OpX Thursday – I expect nothing less.

    looks like I missed some fun.

  • http://practicalt.blogspot.com/ Darth_Gerb

    those SPY 134 calls?
    went from 11 to 16 cents.
    who needs Vegas?
    😉

  • http://practicalt.blogspot.com/ Darth_Gerb

    *Market close < 15 min *

  • Skynard

    Nice going Bro!

  • StrikeFirst
  • http://evilspeculator.com molecool

    :-)

  • http://evilspeculator.com molecool

    At least someone gets it… which btw ties directly into the theme of this post. The arrow was there before the spike after all…

  • ronebadger

    shorts stopped out at the BIG candle….much too weird goings on to get involved with anything, either way, on eve of OPEX….fun to watch thought…keep the comments coming

  • http://practicalt.blogspot.com/ Darth_Gerb

    the best information diet for me was banning those elliot entertainment shops.
    wave 3 this, extended wave that. (my L*rd)

  • AMCabrera

    ooh there she goes USD/NOK. The day I do not pay attention it finally makes near my target.

  • http://practicalt.blogspot.com/ Darth_Gerb

    wrong chart?

  • raised_by_wolves

    (my L*rd)

    You summoned me? (Kneel Gerbil).

  • http://practicalt.blogspot.com/ Darth_Gerb

    LoL.hey what’s your outlook on commodity land?

  • raised_by_wolves

    I’ve been long gold, short equites, and waiting to long or short silver.

  • Schwerepunkt

    VIX got dorked.

  • http://practicalt.blogspot.com/ Darth_Gerb

    I can understand the neutral stance on silver.the SPY/SLV ratio is at a critical point [ 4.80]  could do either direction (in the ratio).

  • AMCabrera
  • http://practicalt.blogspot.com/ Darth_Gerb

    MERCY!!!
    There goes Amokta’s UVXY RETIREMENT!
    😉

    -12.11%

  • raised_by_wolves

    ($SPX)/(GLD) is below the 25-day and just below or at the 100-day MA.

    (SLV)/(GLD) is below both and is at the bottom of flat Bollinger Bands. I am anticipating it will either bottom here or get in bed with Bollinger (Scott would say get embedded).

    (JJC)/(GLD) is also interesting. See for yourself.

  • AMCabrera

    I really deserve what I had handed to me. 

  • Ben Dutton

    I completely understand the entry on the inside bar setup, but how do you determine profit targets?
     

  • http://practicalt.blogspot.com/ Darth_Gerb

    JJC/GLD – what’s the thinking of that ratio?
    it’s wiggled, but basically gone nowhere since Jun 1.

  • amokta

    NO worries :-)
    My present concern is SIMO!

  • http://practicalt.blogspot.com/ Darth_Gerb
  • raised_by_wolves

    it’s wiggled, but basically gone nowhere since Jun 1.

    Therefore, it will.

  • amokta

    True!
    SIMO has been a good play for me, last few weeks, with the swings, but every cash-cow has its milkless day, and plus cows can die unexpectedly, from diseases such as IPO-fraudosis or Ponziosis :-)

  • raised_by_wolves

    Convict Scott sets a 2-1 risk-reward ratio and walks away. Mole Cool is probably more discretionary using net line targets and the zero to inform him.

  • Skynard

    That was fun!!!!!

  • StrikeFirst

    Mole usually has his 25 sma and 100 sma bollinger bands up, with the midlines showing(i.e, the 25-period and 100-period simple moving averages).

    Those are good targets to aim for.

    (Someone correct me if I’m wrong.)

  • raised_by_wolves

    When and at what price did you get long?

  • raised_by_wolves

    On second thought, I don’t want to ask.

  • amokta

    Ive been getting long every day almost, for day trades (some into next day). Usually works when it dips. Avg price today bought 13.80
    Only modest position, lets see what happens tomorrow, might bail!

  • amokta

    No worries, its a volatile stock, plus high risk.
    Key decision is to bail if its on a descent towards 2009 levels

  • supervilin

    Excellent post, Mole! will have to revisit for it to sink in. And thanks for NG setup, made 5R on it :) 

  • newbfxtrader

    Nice work!

  • newbfxtrader

    Looks like you had a good day. Did have some longs today not much. Fun over by the time I reach home!

  • http://evilspeculator.com molecool

    Seems like you’re the only one who even read it. Really funny to put this up and then see everyone so spellbound by today’s gyrations. Go figure…

  • http://evilspeculator.com molecool

    Can you guys spell one foreign word properly for a change?

    It’s ‘merci’ … sigh…

  • Skynard

    Talk about timing, was stopped out of /ES @ 1318 (from 1308) and decided to enter long again at 1315 support and then all hell broke loose. +32 pts today:)

  • http://evilspeculator.com molecool

    Actually that’s bullcrap – Volar did a whole post on that.

  • http://evilspeculator.com molecool

    It’s funny how you guys try everything else and then finally arrive at what I suggested way before. Must be an American thing if you put any credence into Winston Churchill’s opinion on the matter.

  • Skynard

     Took that trade short and was stopped out, then reversed it for a good gainer. Still long:)

  • newbfxtrader

    Sky even on a ramp day /ZS looking weak. I am thinking its destined for the gutter. What do you see?

  • captainboom

    I just read it.  Excellent work once again.  I’ve bookmarked it to return to, and will be discussing this post with my teen daughter. I especially like the point about the quality of the source.  I call people out on their bullshit all the time.  e.g.  How do you know that?  What’s the source of your information? Is there data to support that position?  It can make them uncomfortable when I do that, but I don’t care.  I don’t like it when they talk smack to me.

  • http://practicalt.blogspot.com/ Darth_Gerb

    I read it Boss. I’m practicing Tenet #3.
    Tenet #3: Embrace The Silence

  • supervilin

    Nice Skynard! I got out before the EOD. May consider reloading in the morning.. thinking there may be a pullback after such a move?

  • supervilin

    There are a lot of folks eating this up but not commenting, keep that in mind 😉
    Can you suggest a good book on this subject and/or NLP?

  • Skynard

    Ya, tightened up all my stops since my vacation starts tomorrow. If a pull back occurs will try to chime in and reload them.

  • amokta

    NIce one on NATGAS! Must become sub soon!

  • Skynard

    Here is a 4hr chart, think you are right. Due for a snap-back on this chart (sitting on the 100sma) but the daily looks weak. If it even comes close to that level again short the Mofo if you think it is going lower. Watch for a lower high to be established.

  • http://practicalt.blogspot.com/ Darth_Gerb

    Risk ON.
    Now..this is my own opinion (based on a single indicator).  you are entitled to yours.

    Risk has crossed the median line in the bollinger channel.
    now, for me this means, no shorting.  Long is dependent on how I use my own setup rules, not emotions.
    my 2 grams.

    http://stockcharts.com/h-sc/ui?s=$BPSPX&p=D&yr=0&mn=4&dy=0&id=p13036151249 

    EDIT:
    this is a year look,
    http://stockcharts.com/h-sc/ui?s=$BPSPX&p=D&yr=1&mn=0&dy=0&id=p24772037323
    it does not predict, merely removes the noise.
    http://stockcharts.com/h-sc/ui?s=$BPSPX&p=D&yr=1&mn=0&dy=0&id=p24772037323

  • newbfxtrader

    It works until it doesnt. You have to admit its been bang on past three years. April has been a major top in 2010, 2011 and 2012.

  • newbfxtrader

    Sounds good. Lets see how it plays out.

  • Fibz

    Everyone’s focused on Europe, but the supreme court decision on healthcare reform also due before end of the month.

  • newbfxtrader

    US govt has screwed up the health of billions worldwide. I wish they would stop trying to interfere.

  • raised_by_wolves

    Hmmm, while NLP has been “possibly or probably discredited” in clinical psychology, it is being used in other areas. . . .

  • raised_by_wolves

    Thanks for the update.

  • http://practicalt.blogspot.com/ Darth_Gerb

    Do I look French?
    (don’t answer that).

    Jodido pero contento

  • raised_by_wolves

    “As a benefit to whom” has it been “possibly or probably discredited”?

  • newbfxtrader

    http://www.timingcharts.com/charts Mean reversion is a bitch. Pull up a 5 yr COT data on soybean to see what I mean. We are coming off record longs. We should have considerable downside.

  • raised_by_wolves

    @molecool:disqus Have you applied NLP offensively?

  • saints51

    Great article Mole. I don’t trade with fundamental analysis but I have let if affect me especially NFP when entering trades. I hesitate on those days. Need to reprogram….reboot

  • stovis

    What am I missing? Didn’t NG trigger short?

  • StrikeFirst

    “Tenet #2: Less Is More”

    Completely agree.

    I read this blog, check my emails, and surf porn.

    That’s it.

    :-)

  • StrikeFirst

    That’s what I was thinking.

    But then you would have been stopped out a few ticks above the high of the inside candle(as per the rules), and flipped the trade.

    At least in theory.

  • StrikeFirst

    “Tenet #2: Less Is More”

    I hope no one ever hears that from their wives/girlfriends.

  • Skynard

    Wow! OK, we have resistance at hourly NLBL 1407.25 and 50% 1415 to watch. Needs to clear 1392 first:)

  • raised_by_wolves

    Any woman that says that should be more grateful that her man is willing to put his dick into something dark and dank that bleeds once a month.

  • Cerebro82

    Haven’t posted in ages. I have continued reading your posts from time to time. This post hit home Mole. Every section I gathered something that I can relate to in my trading. That is all we ask for. Not the bullshit. Thank you. I stop reading all blogs for this very reason. They were harming more than helping.. I continue to periodically visit evil because your setups are pristine and your perspective is original. Congratulations on your growth as a trader, host, and a person. Keep up the good work. This leech truly appreciates your work.

  • Cerebro82

    I have learned a great deal from you

  • stovis

    Neither the original post nor the cheat cheat said anything about flipping it.

  • StrikeFirst

    An inside day signifies indecision; it’s a tug-of-war, if you will, between bulls and bears. The breakout, when it comes, is usually violent and profitable. You just have to be on the right side of it.

    Does it work every time? Of course not.

    But I knew about inside days before I ever read about them here. And I DO know that “professionals” use this strategy.  

    The key(as with any strategy), is to limit risk.

    If you only win on half your trades, but your winners are bigger than your losers, you will be profitable.

  • Skynard

    Well, personally the higher probability trade would have been a long since we have been screwing around the 61.2 retrace for a while. Although the short triggered and you do not get what you expect, then just reverse it because that’s what the higher probability would be. 

  • stovis

    Okay, but in the spirit of Mole’s above post, I still have to say, if that was the plan for trading it, he should say that in the recommendation, and/or it should actually say something like that on the cheat sheet. It doesn’t.

  • StrikeFirst

    Does anyone know how to read this chart?

    I don’t understand P&F charts:

    http://stockcharts.com/def/servlet/SC.pnf?chart=$BPSPX,PLUADANRBOPADF1!3!2!!2!20]&pref=G 

  • supervilin

    thats some nice data! tnx

  • Fibz

    I was just thinking how trading is probably the most boring profession on earth. 99% of my time is spent waiting for setups, which can be a long time depending if the targets are wide. In line with the idea of “less is more” or “keep it simple, stupid”. The market jumps at news events, but those aren’t always prime entry or exit points.

  • AMCabrera

    no that just it. I took it a day early.

  • supervilin

    Yeah, I also think you have to apply your own style to it. it is basically just a narrow trading range that allows to lower your risk. You will get a lot of fake breakouts, sometimes it triggers and then lingers on in same range for days.. So sometimes I do not take them at the first trigger, or I only take them to one side that my charts favor.. Anyway, when you watch a lot of them play out, you will get the sense of variety that exits. 

  • Skynard

     The hourly 100sma is lining up nicely currently at 1422 and seems like a retest of that 50 would fit the bill:) Good luck!

  • Skynard

    /CL & /HG have begun some levitation:)

  • omelette

    inside days were invalidated though

  • Skynard

    Does the candle we had three days ago constitute an ID? 

  • Skynard

    Adding AUDJPY long on the pull back

  • MrMargin

    When we breached the high after breaching the low first, it became a Fakeout Buy setup. Maybe that should be added to the cheat sheet.

  • MrMargin

    NG was the only trade I took this week, rest of the time was spent doing different things. Now off to London for a weekend of partying and mocking banker types (more than enough to be found there) who work 80 h a week.

  • omelette

    it had a lower low so i’d say no..but today’s action would have triggered a rtvb in the break of the high of two days ago. So i’ll give you that :)

  • Skynard

    Ah, OK got it.

  • http://evilspeculator.com molecool

    It’s not boring if you manage your time properly – I am never bored.

  • http://evilspeculator.com molecool

    Thanks!

  • http://evilspeculator.com molecool

    Yeah – you’re right. Should have been more concise. Will think about adding it to the cheat sheet.

  • http://evilspeculator.com molecool

    Take no prisoners and be sure to mention the weather.

  • supervilin

    Update on USD/JPY inside day short trade.. After few days of fucking around, it seems to be breaking to the downside.

  • http://evilspeculator.com molecool

    Careful – commodities are like teenage girls. Just because they are due home doesn’t mean they’re about to show up.

  • Schwerepunkt

    cable cut

  • ronebadger

    Mole – DailyZL is a couple days behind…when you get a chance, I’m curious to see the update…thanks!

  • http://iberianviews.blogspot.com/ catracho

    nice post..very true!

  • AMCabrera

    http://www.youtube.com/watch?v=RWbQasewoq0
    I dedicate this song to all traders. 

  • http://profiles.yahoo.com/u/6NFOSGRXKB4LMGOAXV3ZY6IWZA Grainman

    why have the equity futures stopped trading?

  • bdoone

    You using June?  They expired, gone to Sep.

  • Joe_Jones
  • beentohardknocksU

    P&F are meant to be straightforward in terms of “confirmed up trend” and “confirmed down trend” with targets.  Probably easiest place to go is stockcharts (where your chart is from) and go to their “chartschool” section.  Just look at the column next door.  If the column furthest to the right (the active one) goes higher or lower than the one beside it, you have a signal.  The more columns to the left it exceeds, the more significant the move (double bottom breakout, triple bottom breakout, etc.)  To go further, support and resistance and targets and the like, the trend lines pretty much leap off the page.  A few minutes with the Chartschool section and they are a breeze to read.  The other thing to remember is that time is irrelevant to P&F (except for dictating when a box is created).  If the close for a time period is inside the prior box, no new box gets formed.  So you can read these with almost any time interval (5 min charts, hourly, daily, etc) and you get much less noise.  

  • beentohardknocksU

    I am seeing a very nice neg. divergence on ZL – I am guessing that is the bell you are ringing?

  • Joe_Jones

    yup yup

  • Joe_Jones

    I’ll wait for a clear breach of VWAP before being fully convinced of it. A 3 points divergence on ZL could even be better.

  • beentohardknocksU

    is that clear enough for you?

  • beentohardknocksU

    Here’s a classic example of a blue arrow coming along in mid-candle.  We have just had a nice VWAP breach and zero has gone negative after a fairly convincing looking negative divergence at the day’s highs (so far).  We’ll find out in a couple of minutes if it is there when the candle is fully formed.  

  • Joe_Jones

    not yet. We are still playing with VWAP. I would prefer to see a higher high (about SPX 1339-40) with a lower ZL. 

  • Schwerepunkt

    Anybody watching cable? Surging.

  • AMCabrera
  • AMCabrera

    http://content.screencast.com/users/AMCabrera/folders/Jing/media/2ebc88b2-dc6a-461b-a11e-52347a85b57d/2012-06-15_1116.png
    oh wow. pretty nasty. lemme look at order book. Well position ratio is about 50/50 

  • Joe_Jones

    We now have a nice resistance trendline on 5 min zl.

  • http://practicalt.blogspot.com/ Darth_Gerb

    Tenet #2 – less is more.

    (reuse old charts)
    http://evilspeculator.com/?p=29327#comment-557314315

  • http://iberianviews.blogspot.com/ catracho

    DOW so far pretty similar..

    if it goes as everybody “expects” this weekend Monday could be volatile..

  • Joe_Jones

    I think this is it. I am gonna sit back and enjoy the show (unless the resistance trendline on 5 min ZL is well breached, then in that event I’ll flip the trade)

  • http://practicalt.blogspot.com/ Darth_Gerb
  • Joe_Jones

    LMAO!!!

  • Schwerepunkt

    quieter than usual . . .  akimbo in limbo.

  • Turps

    I’m looking at it thinking its a divergence. Would you agree?

  • Schwerepunkt

    momo building again . . . 

  • http://practicalt.blogspot.com/ Darth_Gerb

    looks like a brass pole (5min)

  • http://practicalt.blogspot.com/ Darth_Gerb

    /ES  http://s14.postimage.org/smyd8z1a7/temp1.png

  • supervilin

    Closed /ZS overnight short.. looking to reload sunday or monday, downtrend in the hourly is intact. long term picture is also pretty bleak (also see newbfx post on COT data)  

  • ds2

    I’m short here.

  • supervilin

    What do you guys make of the zero here? on 5 min was pretty strong signal, but we hot divergence of sorts on the hourly and some blue lights… just took a lottery short, will be out before EOD :)

  • MidLife

    bonds up, just need dollar to step up a bit and I think you’ll be good, but with opex it always feels like a coin toss

  • AMCabrera

    Dang, is the juice still going. lol fun to watch I must admit. I could imagine that is causing the drift higher too a lot of watching going on. 1340ish probably has to be taken

  • saints51

    EOD will be fun to watch. 

  • newbfxtrader

    Yep. Will trade small. Seems to have broken daily trendlines on record COT position unwinding. What would you look for for confirmation of downtrend?

  • AMCabrera

    NZD/USD it has that look on 4 hour chart. just amazing I went long too NZD/USD early this week and closed that bitch way way to soon. Then the short I took yesterday has been blasted which increases the probability of the down turn of course 😉

  • simonn1080

    look how wide the spread between the 10y treasury and spx has become.. Either the 10year tanks .. or the market is going down… My money is on Bond traders

  • newbfxtrader

    Yeah possible I am out of most longs. Will get back long if nothing major happens this weekend.

  • newbfxtrader

    The 10yr may be front running the next round of QE though. Its not always clearcut.

  • bdoone

    Self explanatory

  • AMCabrera

    side effect of fear and only one group can cause that little phenomenon. dungeon masters 

  • simonn1080

    Going to the close should be very interesting ladies and gentlemen.  Buckle up

  • ds2

    Or not.  Could be a snoozefest.  Hoping to see something but not expecting it.

  • captainboom

    With TICK averaging positive the past two hours, I’m not sure I trust the blue light special arrows.

  • http://evilspeculator.com molecool

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  • ronebadger

    ZL key today, along with the failed 5minZL divergence

    check out the (imaginary) 5minZL trendline of bottoms

  • http://twitter.com/DanAruba Dan

    I have a saying. The one`s that are talking don`t know, and the one`s that know aren`t talking.