Setups Setups Setups!

It’s going to be a busy morning as setups are crawling out of the woodworks and everything must go! On the equities side further weakness overnight has brought us to the first real hurdle:

2015-07-22_spoos_briefing

That daily Net-Line Sell Level at 2102.75 is one of three that should start slowing momentum a bit. If we manage to push above 2106.75 then I’ll grab a few long positions with a stop below the recent spike low (wherever that’ll be).

2015-07-22_ZN_briefing

Bonds – I got kicked out of ZB the other day by just a few ticks which was highly annoying but it happens in the best families. The hourly NLBL breach here on the 10-year contract was good enough reason for me to try another stab at this. Conservative stop below the 100-hour SMa.

2015-07-22_AUDJPY_briefing

AUD/JPY – what’s to be said here – long of course with a stop a few pips below the 100-hour BB.

2015-07-22_EURCAD_update

EUR/CAD update – unlike ZN that one stuck with the script and I’m moving my stop to 1.414 now. You may recall that I am waiting for it to switch into trend mode. We are close but not there just yet.

We’re just getting warmed up – more setups below the fold:


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.

Decent participation here in recent days, given that it’s mid summer and all – keep it up steel rats!

Cheers,

cheesy

I’m Your Huckleberry

I’m sensing a possible inflection point across various market verticals this morning. Now if you ask me what I mean by ‘sensing’ and if I have completely lost my mind then I would respond with ‘divergences and assorted correlated price action’ to the former and ‘affirmative’ to the latter. Let’s just say that I’ll be bull’s huckleberry up here – but only until 2124.25 – my boldness comes with price limits.

2015-07-21_spoos_briefing

All jokes aside – I’m a bit pressed for time this morning so let me walk you through my nefarious plan. Basically equities seem to be slowing down and are clearly diverging. The YM for instance is already pointing down while the NQ is still holding strong. This could of course mean nothing but the 25-hour BB is looking like a python at this point and is seamed by Net-Lines on the up and down side. All that represents a reasonable inflection point I plan to exploit:

  • I’m already short 1/2R with a stop above 2124.25.
  • If we drop below  2115 I’ll be adding 1/2R to my exposure.
  • If stopped out I’ll be long with a stop below the lower 25-hr BB to ride the final phase of the ongoing squeeze.

That’s very little risk with potentially high rewards. Just the way I like it.

2015-07-21_AUDCAD_briefing

AUD/CAD is also looking good and I think it’s a great short (didn’t mark that on my chart) and that’s my current position. UNTIL of course we push above that diagonal – which is when I plan to be long.

More goodies below the fold.


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.

Promising price action today and other setups may be developing – so get busy and let me know how you fare.

Cheers,

Who’s The Sucker?

The ongoing advance in equities continues unabated and I would strongly caution you against taking out short positions until the tape delivers us evidence pointing toward a reversal. Statistics mean exactly jack during low participation short squeeze periods, which is a lesson the Zero has taught us many times over the past few years.

2015-07-20_zero

Just compare the participation on the way down to the tiny signal range we’ve seen over the past few sessions. It is quite normal to see larger signal swings once gravity sets in, but this lack of participation on the rebound is a bit suspect. And in my book ‘suspect’ is not a license for taking out contrarian trades – quite on the… well – contrary. Some of you old timers may remember Whispering Saul, a trading legend from a different time who’s among a handful of candidates credited for an old aphorism which should be heeded especially during earning season: “If you enter a poker game and you don’t see a sucker, get up and leave – you’re it.”

2015-07-20_spoos_briefing

Following that advice I remain extremely skeptical about the equities side – in both directions. The daily panel is losing a bit of steam here and we have the S&P and Dow futures lagging the NQ. Still, until I see signs of real price weakness I won’t be touching this one with a ten foot pole.

2015-07-20_spoos_briefing_2

And the best place to look for such signs would be the hourly panel. However thus far it’s trailing its 25-hour SMA like a boss. This could easily continue higher for quite a while courtesy of over eager retail suckers with grandiose allusions of an ‘overdue’ reversal. Not to pimp my own ware but I think the Zero will be instrumental in offering us early clues, so I’ll be monitoring it carefully.

2015-07-20_GBPUSD_briefing_freebie

Cable is looking like a decent long here although that diagonal I painted is falling. So I’ll only deploy 1/3R here and would be prepared to flip for a short position on stop out.

A few more goodies for the subs below the fold.


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.

Now have fun but keep it frosty.

Cheers,




    Zero Indicator


    Darth Mole Alerts

  1. poll

    • How many discretionary trades to you place per month?



      view results

      Loading ... Loading ...


  2. NinjaTrader
    Kinetick

    search warrant



  3. recent misdeeds

    1. Paying Attention Pays Off
    2. Sell Off Thursday Wrap Up
    3. Pay Attention Now
    4. Setups Setups Setups!
    5. I’m Your Huckleberry
    6. Who’s The Sucker?
    7. Mind Hacking
    8. Coal Mine Canary Update
    9. The Measure Of Mojo
    10. The Reckoning



  4. links