Soylent Red

On Monday morning, sensing that a multi pronged strategy was needed, I presented you with four distinct scenarios which I separated into convenient color codes according to their respective trading directions. After a brief spike up we were treated to Soylent Orange which quickly and somewhat unexpectedly turned into Soylent Red late last night. To repeat, what we were waiting for was a quick drop below the green diagonal, followed by a retest of ES 2140.

And for some mysterious reason Ms. Market found herself in a good mood last night and thus decided to grace us with this marvelous entry opportunity. So in short – you should be short now with a stop near 2150. If you missed this entry then go out now and pick out a solid tree you can kick.

Of course there is no guarantee that this campaign is going to go anywhere. The daily and weekly panels show us support near 2130 and 2112 respectively. Those are going to be our first two hurdles and nothing bearish whatsoever transpires until we are trading below the latter one.

And then there’s this of course – the FOMC minutes being reported in a bit over 4 hours. Could easily smash this campaign to pieces once again. So keep your position sizing to 1% or less and be prepared for a surprise spike higher.

The Euro has descended into bounce territory now given the context on the daily and weekly. However one must never under estimate trending action on the Forex side, thus I’m waiting for a sign on the hourly that it’s time to get long. If nothing else another trip to the ATM is most definitely on my agenda today 🙂

If you’re a sub then you should already be short the Yen since Monday. But if you snoozed the entry then this is probably the last opportunity to go short.

Or long if you’re trading the USD/JPY. A pop through that NLBL at 104.157 is going to completely change the dynamics here and make it rain for anyone nimble enough to reserve a seat on the bus. Expect the obligatory shake out attempt of course, thus don’t be too hasty about moving your stop to break/even.

Movie Trivia

By the way, that bastard Heston screwed me out of a super cozy summer internship back then in ’73. Except for the occasional screams of horror and having to mop up a puddle of blood here and there this was one sweet gig for a fledgling teen. Flexible hours, free sodas and you could eat all the crackers you wanted. A bit tangy for my taste but I was on a budget and must have gobbled down buckets full of that stuff.