Steady As She Goes Now
A question came up in the comment section today pertaining to how to count lower lows to produce a NLBL. After looking at the description I realize that I need to probably rephrase the rules. Let’s review today’s NQ example:
I always used to refer to three lower lows but that’s actually incorrect. The way I’m counting them is to look for three consecutive lows – which in other words are in fact two lower lows. If we needed three lower lows then we would need four candles – the setup is a three candle configuration which requires two lower lows. I hope this clears it up and I apologize for any confusion.
You may recall that I suggested to keep using the inside day trigger on gold yesterday. Well, I’m glad I did as precious metals finally took off across the board. At this point my target is the 1500 mark where it’ll also meet up with its 25-day SMA.
I don’t really have much to add to the situation over in equities. We saw the tea leafs early on and got on the bullish bus just in time and before the VIX buy signal triggered (and sealed the deal). Well, it’s been green (white) candles ever since and thus far we are in good shape.
Caveat: The volume profile shows us a drop off not too far from here after 1590. I’m not sure that’s a huge problem as the tape in recent past has managed to bubble higher on low volume fumes. However it’s possible that we’ll see a quick correction before equities muster up enough mojo to punch things to the next level. If you’re long you should be prepared for that. Unless you really know how to micro-manage your daily positions I suggest that you pursue a strict ‘hands off’ approach. It’s easy to get shaken out and then missing the next leg up. Of course if this is your target zone then feel free to jump ship.
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FYI – if you took that early morning entry on crude today then I would suggest you close out now 😉