Zero Indicator
Now Reading
Sensing A Trap
13

Sensing A Trap

Sensing A Trap

by The MoleJune 23, 2017

Catching entries and holding them for more than a day or two has been increasingly difficult lately, in particular since the beginning of June. Not only are we in a seasonally bearish period during what still continues to be a late stage bull market (until proven wrong), but intra-day volatility also appears to be in a cycle of expansion. Originally this post was supposed to feature an early summer lottery ticket but upon further consideration I had to (once again – yes) err on the cautious side. Call me a chicken but I think a more conservative approach has kept us out of a lot of trouble recently.


2017-06-22_Zero

Let’s start with the Zero which shows us very little participation during yesterday’s sell off. The signal range is tiny on both the early morning ramp and the late session sell off which effectively go us nowhere.

2017-06-23_ES

Of course the current formation in the E-Mini is extremely tough to pass up and even though it is Friday I may have been tempted to drop a teeny-weeny position into my early summer lottery ticket. But it is not to be…

2017-06-23_NQ_update

For what irks me the most right now about equities are the ongoing divergences between our three main indices. Here’s the NQ which is suddenly showing signs of life and its own juicy looking formation after lagging the other two all week.

2017-06-23_YM_update

However what ruins the party for me is the YM which used to be the most bullish of the bunch until most recently and is suddenly in sell off mode.

Bottom Line

Nothing makes sense right now in equities and once again I’ll have to say no to what otherwise looks like a great entry. Given the ongoing divergences across our three indices and the current level of intra-day volatility it’s quite possible that we are witnessing distribution across the board.

There are however two setups I am very much interested in:

evil_separator

It's not too late - learn how to consistently trade without worrying about the news, the clickbait, the daily drama and misinformation. If you are interested in becoming a subscriber then don't waste time and sign up here. The Zero indicator service also offers access to all Gold posts, so you actually get double the bang for your buck.

Please login or subscribe here to see the remainder of this post.

Sign up here to receive my FREE early morning briefing:

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.
Enjoyed this post? Consider a small donation to keep those evil deeds coming!

BTC: 1MwMJifeBU3YziDoLLu8S54Vg4cbnJxvpL
BCH: qqxflhnr0jcfj4nejw75klmpcsfsp68exukcr0a29e
ETH: 0x9D0824b9553346df7EFB6B76DBAd1E2763bE6Ef1
LTC: LUuoD6sDWgbqSgnpo5hceYPnTD9MAvxi6c
PayPal: https://paypal.me/evilspeculator