Somebody Knew Something

Apparently our Zero indicator once again was spot on when suggesting that something nasty was brewing in the woodshed. As you recall the signal did not at all match the tape and not ever having encountered this phenomenon one possibility I suggested was that of distribution. We all know what happened next right at the open this morning and it wasn’t pretty.

You may be thinking that I’m ready to throw up my hands at this point but nothing could be further from the truth. As a matter of fact today’s gyrations may have run a few stops but they also served a purpose in that they put things into laser sharp focus. Let’s review where we are – today’s attempt to scare the children put us right above the 100-day SMA – so now we know that it continues to be observed and thus is a great spot to accumulate. The ensuing run up higher put us right below the 25-day SMA and once again that is where I expected resistance yesterday.

Now we also have a weekly NLSL at 1665.75 – and that one expires – well, TODAY! That’s good news for the bulls and what’s also good news is that the 100-day at this point lines up with the 25-week SMA. Plenty of support that was never challenged even when things looked rather dismal.

The 1665 mark also happens to be the center of our volume hole and from hereon the situation is rather binary: Above 1666 the bulls run the tape – below 1665 the bears still have a fighting chance (but are losing credibility rapidly).

On the NQ futures we now have a triple touch of a horizontal that points at 3148 – which also happens to be a brand spanking new NLBL on the weekly panel. Could this be any better? I think this should give you rats more than enough to structure your exposure on the equities side.

Quick update on our double inside day entry on crude which triggered this morning. Way to go!! Not only did it run higher but it even managed to breach a daily NLBL in the process. Given the current climate (Syria and all) I cannot guarantee that we’ll see no further gyrations but as we produced 1R in one swoop I would put my stop below the NLBL and be done with it for now.

I have absolutely kick-butt FX setups for you guys today – NOT to be missed. Please step into my lair:

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.

Alright, and now it’s Hefeweizen time for the Mole. Grab a cold one yourself and enjoy your weekend!

Cheers,