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Spoos Net-Lines
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Spoos Net-Lines

by The MoleJune 15, 2011

One of my more acute readers noticed that I actually posted the wrong chart in my wrap – instead of the 60-min spoos chart I put up one of the S&P cash – sorry about that. Let me remedy this slip up post haste and show you what has happened in the interim:

As you can see we are now nicely perched between a NLBL at 162.75 and a NLSL at 1259.75. Could it get any better?

Yes, it could – as we are currently painting what looks like an inside candle and you know the drill that our resident convict has drilled into our collective numb skulls: After conclusion of the current candle (i.e. 9:00pm EDT) take a long position on the breach of the high or a short on the breach of the low. Folks, we are talking a picture perfect setup here – Scott’s candle magic plus two net-lines. How could any self respecting rat resist? 😉

In terms of targets I’m pretty conservative – I’d probably give it three handles either way, depending on velocity of course.

On a hunch I checked out the AUD/JPY and as I suspected an almost identical setup is currently unfolding on the FX side. So if you’re not comfortable trading the spoos (some rats are afraid of the big bad futures it seems) then you can play this one with your Forex account.

Alright, you have been briefed, let’s bank some coin! I’m gone to martial arts practice for the next few hours and my trades are setup. I expect you guys to carry this one by the book – please chat amongst each other if you have any questions about this.

Cheers,

Mole

P.S.: I’m really liking this indicator. Have a feeling we’re going to have a lot of fun this summer.


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 various social media waterholes below.
  • Anonymous

    I cannot resist will be drawn to the trade like a moth to the flame. Hopefully “the flame” here is a bucket-o-cash, but I’d take a fistful too.

  • Anonymous

    Thanks for the update Sensei.

    I see clearer now.

  • http://evilspeculator.com molecool

    Seems to be resolving to the upside – don’t get cocky and be prepared for a retest of the net-line.

  • http://profiles.google.com/acabrera768 andres cabrera

    I took a sucker punch yesterday. My Xau/usd did great only because it shot upside hard. But thinking it was to obvious for it eur/usd to fall hard from 1.44 cost me.

  • Anonymous

    E-mini watch guy (Barry) has a good day recap. Blue professional bars at EOD and LOD would favor a bounce tomorrow.

  • http://thebhbgroup.com TheBHBgroup

    nice call on the 3 -4 pt handle move here in the globex ES futs…..check out that dx move today…wowzers looks like 77.40 next stop on the uupside!

  • http://evilspeculator.com molecool

    Well, that ES trade didn’t run very far and AUD/JPY triggered to the downside. What’s notable is that double NLSL now – going to post a new pic in a sec.

    http://content.screencast.com/users/mmehrle/folders/Jing/media/33884d52-4942-499a-baf3-da93b387bf67/2011-06-15_Net-Lines.png

  • http://evilspeculator.com molecool
  • Anonymous

    The Asian session, except for news driven events, usually is pretty predictable relative to US Index futures and FX:

    The morning session: usually a stop hunt fest (moves in opposite direction of the US close); JPY crosses weaken. Generally bullish beyond those points.

    The after lunch session: reverses earlier moves and continues the US trend, typically for a near flat close on the US index futures. FX moves are generally unchanged.

    It can be an “easy” play to follow the US session trend over to the Nikkei. But my only option is the Nikkei futures on TOS.

  • http://evilspeculator.com molecool

    Sounds like taking candy from a baby. Guess I’m moving to Australia then 😉

  • http://evilspeculator.com molecool

    Wow, AUD/JPY is dropping like a rock now. ES breached NLSL at 1259.75.

  • http://evilspeculator.com molecool

    I don’t like the odds on this one however – target zone is too close for comfort.

  • Anonymous

    It is easy but the moves are hard to trade… they arent impulsive, they are choppy counter trend type affairs, and they can be quickly reversed in the euro session

  • spicestory

    mole, massive thanks for posting AUD/JPY NLSL candy taking 😉

  • http://thefxspeculator.blogspot.com Onorio

    Possible risk setups forming now, EURGBP and EURCAD are forming 4h pin bars and USDCAD seem to be on a retest variation sell after yesterday ramp up.

  • http://thefxspeculator.blogspot.com Onorio

    Long EUGBP 

  • Anonymous

    4H USDCAD would now be a failed RTV Sell so and with expanding BB, should be a good long.

  • http://thefxspeculator.blogspot.com Onorio

    despite the fact that the move is a bit extended i have to agree that if not long, only out.

  • Anonymous

    Actually, that was a terrific trade you got there on USDCAD yesterday. 4H NZDUSD also seems to be embedded in lower BB with bands still showing no signs of turning around. 

  • http://thefxspeculator.blogspot.com Onorio

    Well i got stopped at 4R yesterday and im out since than, at this point i rather stay out than jump in the bandwagon. It`s not that we couln`t go higher cause we probably will, but i prefer to wait and buy a dip, when we get one…if we get one :)

  • http://thefxspeculator.blogspot.com Onorio

    By the way everyone is talking about 1250 for a bounce, so probably we will have some fireworks arround that level to the bulls load and than we can go bellow 1200

  • Anonymous

    Not really a fundamental reason for a further sell-off on top of an oversold market. Long-term fundamentals are unstable, but short-term they are fine IMO.

  • http://thefxspeculator.blogspot.com Onorio

    I don`t remeber any fundamental reason for the market rally to 1350 either

  • Anonymous

     Well businesses in the private sector are doing quite well. It’s only the public sector which is lagging.

  • Anonymous

    Slightly mixed signals in the premarket – precious metals aren’t rising as much as /dx falling. Oil is actually down!   Equity has been trying to rally given strong USD in the past two days. This could very well be OPEX effect. 

    Mole – can you comment on the hourly Zero’s? Looks like divergence was building for more than a week. Did I get it wrong?

  • Anonymous

    Well, someone heard me. Oil spiked…

  • Anonymous

    what do you mean by “mixed signals” – Europe and Globex are totally schizo today. :)

  • tradingmom

    Bear wedge type pattern on 5 min zero right here.

  • http://thefxspeculator.blogspot.com Onorio

    4H USDCAD :ugly candle forming…

  • Anonymous

    Bought TLT $97 puts on the morning pop. Still feel a little jagged after not sticking with my FXE put trade until EOD yesterday.

  • Anonymous

    Wait for it…….

  • Anonymous

    Agree there, not candy, just some edge. And as scott says, they are choppy and early europe almost always reverses the trend.

  • Anonymous

    What was that quickie drop about?

    That was some 5min candle!

  • Anonymous

    Last shake out before they take it up.

  • Anonymous

    Shook me out, but Zero bought me back in, got some TNA to watch now….

  • Anonymous

    Nice, picked up SPY calls on sale yesterday.

  • Anonymous

    Bought more TLT $37 puts and USO $38 calls on the dip. That was some insane price action.

  • Anonymous

    ZL starts to wake up

  • Anonymous

    dead on zero now

  • Anonymous

    Wait until last 5min candle on SPX resolves. Buy variation setup.

  • Anonymous

    Still, no effect on zero. hmmmm…

  • Anonymous

    This is bullish price action, not accounting for the quadruple witching tomorrow.

  • Anonymous

    “If the expected doesn’t happen, look out for the opposite”

  • Anonymous

    Certainly looks like it. I will not be holding long over the week end though.

  • Anonymous

    yeah strange, keep watching, raise stops then

  • Anonymous

    I’ll be out BYOD w/ min 50% of position pending price action and risk.

  • Anonymous

    Looks like a lot of work being done today with SPY Volume at over 55% of Average Daily Volume during the first hour and a half after the Open.  

  • Anonymous

    second day of capitulation.

    i’ve never seen more than 2 days of capitulating and that was after substantial falls. I have a feeling, if we don’t take off soon, this might soon turn very ugly.

  • Bob the Horse

    Am having worst month for some time despite what I thought was relatively neutral positioning.  It’s been wholesale liquidation at the single stock level in Europe and it’s been brutal.  Having said all that I will risk my career by whipping off my ineffectual hedges at 1247 on ESU1 and then pray for an intra-month rally.  Which I will ultimately expect to sell, playing for a final move to 1180 or 1140.

  • http://profiles.google.com/acabrera768 andres cabrera

    ha yea I think I will just save my cash for when the real moves starts so i wont bleed to death in the up and downs.

  • http://profiles.google.com/acabrera768 andres cabrera

    ha yea I think I will just save my cash for when the real moves starts so i wont bleed to death in the up and downs.

  • Anonymous

    I’m waiting for the “All’s well signal in Greece” BS to come back for about the umpteenth time.   But the Spin Masters seem to be struggling a bit.  They tried to drop the dollar some but it seems to be coming back.  

    This week looks like the first Opex week in a long long time to act like an OPEX week that I remember of years past.   I don’t know if the Bernanke Smoothing Play has lost it’s luster or what.  But I’m not taking anything for granted.  

  • volar

    POST coming soon. Volume very high right now.

  • Anonymous
  • Anonymous

    Greece is ancient history, it will have to declare default eventually.

  • Anonymous

    What ‘s your target on the upside Bob?

  • Anonymous

    I know that, but the “Boyz” have a belief that Extending and Pretending solves all problems.

  • volar

    NEW SENTIMENT UPDATE

  • bisq

    Best of luck Bob , i think thats a decent strategy. Hang in there , we’ve all been there.

  • Bob the Horse

    around 1320

  • Southern

    Mole,

    I just want to say thank you for posting the NLBL… I held my short positions today because of it, so I will certainly continue to be a sub. The zero is awesome, but your post are worth a lot more. Thanks man! Keep it evil!

  • Anonymous

    John Pulson lost some big chunks this quarter. Bears and bulls turned road-kills, nondiscriminatory.  So, who is left in the market? Zombies? 

    GOOG went below $500, and AAPL under $320. …

    Oh. Ooops.  P is off $24% today, LNKD < -15% since IPO.

  • Anonymous

    By the way, /DX back to yesterday’s close. Looks like a giant N-S on the intra-day, and “bearish?” on the daily.