So Far So Good
Given yesterday’s lack of participation in equities yesterday there’s not much to say or do at this point. The market has yet to show its hand and when it does we’ll be able to reassess the probabilities. Lacking new information we should however not feel tempted to fill the void with our fears or opinions.
Shown above is our trusted Zero indicator tracing the E-Mini. You should take particular note of the right hand panel and how participation completely evaporated since last Wednesday.
We did get pretty lucky however in snagging a long entry near what I considered a short term inflection point. Better to be lucky than good I guess. I’m moving my stop to break/even now and plan to sacrifice an extra rare steak for lunch in order to hopefully earn the favor of Ms. Market.
Crude is looking like a solid long on the short term panel right now. As I most definitely like the formation on the daily I’m tempted to grab a small long position right here with a stop below 53.3. However it wouldn’t be out of character for crude to paint one last whipsaw to the downside before taking off. So if that happens then I’ll monitor it Sunday night and try to get on board while the getting is good. Caveat – if you’re trading a smaller account (e.g. $100k or less) then you may be better off grabbing OIL, DBO, SCO, or UWT. However those are ETNs and thus you’re bound to NYSE trading hours.
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