I’m seeing a infinitesimal chance at grabbing NQ longs here. To be clear – the odds are very low and if you follow me into the abyss then don’t risk more than 1/2R at most.
My stop has been set below 4115 (chart says 4119 but I changed my mind) as that’s below both, the 100-hr and 25-hr BBs. Let’s see what happens here in the coming hour – if this campaign survives the first hour into the open then it’s got better chance of success.
I hope everyone is aware of the implications of failure here. Meaning if we drop below 4000 then odds are we are going all the way – my minimum target would be 3500. So this is [...]
I’m having way too much fun this morning, which accounts for my somewhat belated post. There literally seem to be juicy setups crawling out of the woodwork and I just kept adding new ones while reducing exposure on others in order to reduce correlation risk. So without further ado let’s jump right in:
Equities are soon facing a veritable chasm on our volume profile chart, one which spans roughly between ES 1940 and 1980 – 40 handles of non-participation where pretty much anything can happen. At the current velocity I have some doubts as to whether we’ll even make it half way through there but I don’t want to be too hasty with making an assessment as we’re slowly dropping out of a high volatility range and may be seeing more trending tape later this week.
I’m sure you’ve heard the news by now – in a surprise move the BOJ introduced negative interest rates, which caused for some interesting spikes across all JPY crosses. And I may I add that Kuroda was quoted by Reuters just a week ago that he had no plan to adopt negative rates now. Well, in his defense – he did explicitly say ‘now’ – by which he only could have meant ‘right now, this second’. Nobody asked him about the following week, did they?