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Ping Pong
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Ping Pong

Ping Pong

by The MoleMay 9, 2012

Seems equities are playing ping pong down here at the Maginot line. During the European session the spoos are being killed and as soon as the Bruce Bernanke rolls out of bed and reaches for his nunchaks.

Let’s see how long we can hold this up but if we don’t see a decent bounce here soon things are going to turn ugly Triad style. As in there will be screaming, blood and tears. Of course SPX 1340 remains our inflection point and until that happens nothing happens. A few ticks of support make the difference between an intact (although damaged) and technically broken trend.

Let’s mosey over to the currency side where the AUD/USD has proceeded to target. If you’re still in this then consider this your final cue to head for the hills.

EUR/JPY – picture perfect entry yesterday and you may recall that I was pretty excited about this one. It’s definitely moving in the right direction thus far. No guarantees here (or ever) but there’s nothing to do for us right now until it stops us out or proceeds to target. Which by the way is several miles away.

Great entry also on the EUR/USD and since I live in Madrid now (and am getting paid in Dollars) I full heartedly support the current direction it’s been taking. I would be happy to volunteer at the EU currency suicide support hotline if necessary.

I hope you took that USD/CAD short trade I suggested yesterday – thus far this seems to be where the Canadians are politely making a stand. Again, nothing to do here until we breach that resistance line – in which case I would join the long side of course.

More where this came from – we’re also revisiting the commodities side:

[amprotect=nonmember] More charts and cynical 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 or Geronimo subscriber it includes access to all Gold posts, so you actually get double the bang for your buck.
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As ole’ bucky is pushing into resistance we now have a low probability but low risk setup to the short side.

CAD/JPY is crossing the 100-day SMA and is now a short position in Mole’s trading universe. Easy risk management with a stop above that SMA.

Gold – as the chart says – don’t overstay your welcome. Yes, we may proceed to final target but those candles have been fast and we may see some dip buying soon. If you are playing risky then at least be out at 1570. My condolences again to any gold bugs reading this. Another learning experience while marrying your trades is a very bad idea.

Natgas – atta boy!! I took profits at the 100-day SMA but when it breached the 100-day SMA I went right back in. Stop slightly below it and I won’t touch this best until it hits target (or hits my stop of course).

Soybeans – we saw a little snapback today and if you haven’t taken profits at today’s lows then it’s probably best to set a stop above today’s highs and cross your fingers for a retest.

That’s all I have for today – keep it clean and don’t get complacent. Things are not going to flow this easy for long.

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Cheers,

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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 the usual social media waterholes.
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