Market Weather

Trading is like a butterfly. Chase it and it eludes you. Instead, sit down quietly and watch it come to you.

Yesterday afternoon I suddenly had an epiphany of sorts. I was thinking about the recent tape and how it has been rather easy to get whipsawed to pieces in the recent gapping game. And somewhere out of the blue it suddenly struck me that there is a key aspect to trading I actually have never seen addressed anywhere. Maybe I haven’t read some the pertinent books out there – always a possibility. As I have been around the block a few times I had the chance to devour quite a bit of reading material covering a whole gamut of trading related subjects.

One of my favorite topics always was and remains to be trading psychology. Learning about the inherent pitfalls of our cognitive biases for instance was a key turning point in my life as a trader. Even wave theory (which I don’t follow any longer) in some ways taught me to look at cycles and subconsciously I do still think in those general terms when it comes to assessing the overall direction of the tape.

What I however have not seen addressed clearly is market weather. Most of you reading this know about market psychologyInvestopedia defines it as:

The overall sentiment or feeling that the market is experiencing at any particular time. Greed, fear, expectations and circumstances are all factors that contribute to the group’s overall investing mentality or sentiment.

Well, this sheds at least some light as to why investors and traders occasionally make very bad decisions that in hindsight just don’t add up. Why is a VIX of 25 considered high during some market periods and low at others? Why is the Dow at or above 10,000 meaningful when it comes to assessing the ongoing trend? Why is GOOG at 500 considered hopelessly overpriced on the way up but a steal on the way down? Obviously it’s all about investor sentiment and much material has been devoted to reprogramming our feeble minds so that we don’t constantly trip over our own emotions, assumptions, and (mis)interpretations of reality.

Market weather as a concept however seems to have not been covered or at least only been circled around. Going back to wave theory – it does teach us that certain waves have characteristics in form as well as velocity. For instance second waves are considered corrective and often convoluted while third waves are known to be fast and usually more or less unidirectional. But where wave theory breaks down in my opinion is that it constantly attempts to make predictions about what comes next. In some ways it trips over its own arrogance in that it attempts to predict the future by analyzing the past and projecting a continuation of a pattern on several fractal degrees. With counting rules that can be interpreted in many ways. Suffice to say it gets complicated quickly and in the end I don’t see much edge.

Market Weather

One core assumption inherent in wave theory however is correct – the tape does move in repeating patterns or periods. But it’s actually a lot less complicated than you may think. As a matter of fact there are only three major patterns I can think of and all of them feed off market sentiment or common human weaknesses.

I call it market weather. Instead of sunny, rainy, overcast, stormy, foggy, etc. we only have three: Limbo, Rocket, and Honeypot. It’s not sufficient to only be cognizant of the ongoing trend in whatever market you find yourself trading. In order to get positioned most effectively you must always consider the current market weather and if current conditions support a successful trade. Some systems actually do this implicitly but becoming aware of market weather may actually lead you into recognizing more effective setups.

  1. Limbo: The tape keeps you guessing.
    Feeds of: Confusion, opinions (cerebral).
  2. Rocket: The tape runs away from you.
    Feeds of: Pain.
  3. Honeypot: The tape lures you in and shakes out the weak.
    Feeds of: Greed, fear (emotional).

Lather – rinse – repeat. It really is that simple if you think about it. Look, Ms. Market is a very cruel mistress and as such is always out to hurt the maximum number of participants. Hence money flows from weak hands to strong hands. From the majority to the minority. It’s a zero sum game – for you to bank some mighty coin several other players (i.e. losers) have to pay.

Let me give you an example. Above you see my current SPX point and figure chart. The reason why I use P&F charts is because they ignore time and thus cancel out much of the noise inherent in time interval based charts (i.e. hourly, daily, weekly, etc.). I am going to provide a bit more details for the subs below but in essence as long as we remain between SPX 1270 and 1330 we are currently in official limbo territory. I see some bullish charts in my arsenal that suggest a bounce while I have others that continue to point downwards. In other words ‘the tapes keeps you guessing’.

Limbo tape happens usually happens right after a big move, most often after reaching an important support or resistance level. I hate these periods as there is no edge whatsoever. Market makers of course love limbo tape as indecision and conflicting information lead to overtrading and spurious predictions. Over trading can hurt a trader but it’s your own predictions that do you in.

Just before we bounced near SPX 1270 we enjoyed rocket tape – in this case to the downside. They are easy to spot as the tape advances fast and hard. On the upside we often call it a short squeeze – on the downside a long squeeze. Rockets are usually triggered by a breach of an important price inflection point. Unfortunately retail traders often find themselves on the wrong side of a rocket move plus they have a tendency to hang on to their losing trades. When they finally get out it’s often near the end as they finally capitulate. Of course that is when the tape either switches back into limbo or honeypot mode.

While honeypot or limbo periods feel like running in circles rocket tape resembles a hundred meter sprint – if you blink it’s gone and most likely it’s too late to chase it. Which by the way is a double edged sword – some traders don’t have a chance to get out and others are hoping for a chance to get it. My pertinent motto is that it’s better to wish being in a trade than wishing to be out of one.

Honeypot and limbo periods are similar but differ to a certain extent. Both have the same purpose – which is to lure in traders. Limbo does it mostly via confusion which leads to uneducated opinions – I think it presses our cerebral buttons. Honeypot does it mostly via emotions like greed and fear. If you were losing and just capitulated you may now jump into the opposing camp, thus attempting to get back some of your losses. If you didn’t catch a boarding pass and missed the big rocket then you may consider this your last chance to get in. Of course often with disastrous consequences. Another main difference between honeypot and limbo tape is that limbo tape is technically ambivalent while honeypot periods are not.

For an example of a honeypot consider an inverted H&S and we just breached the neckline and shot higher. So far so good. However after the initial push higher it’s not unusual to see prices work their way back to the neckline and often even dip back below. It’s a common occurrence and technically speaking the tape has pretty good odds to resolve to the upside. And it eventually does – but not without shaking out weak some weak hands. And of course burning anyone who got positioned for a continuation lower.

Bring A Raincoat And A Swimsuit

Given three seemingly pernicious market weather patterns you may wonder when exactly is a good time to get positioned. Well, that’s actually pretty straight forward: Right at the end of limbo and honeypot periods.

Limbo: No matter how nasty and convoluted a limbo period – it always has a range or is framed by two inflection points – which actually makes it pretty easy to board the rocket. Be patient and wait until a breach is imminent – no matter how long it takes – then hop on. That of course assumes that your technical analysis or your system has some type of edge. And often you will be wrong, perhaps several times in a row. As there are no guarantees in trading you simply take your losses and wait for another opportunity. Again, if your system (or technical analysis) has any merit/edge then you’ll get another chance. When the rocket takes off it will pay for all the non-starters and then some.

Rocket: Well, right after take off you don’t really get on – just let her ride. If you missed it then that’s too bad and don’t try to chase the first big candles. You can try to get in during a rocket’s mini-honeypot – a small correction if you will. As rockets can go on for a while this often works but it’s not my favorite type of setup. It’s preferable (and of course not always possible) to be part of the initial move and have the luxury to ride out small corrections.

Honeypot: Great technical entries as your technical pattern resolves (e.g. H&S, triangles, inside candles, volume holes, Net-Line brach near major support/resistance, etc.) – or even a combination of them come into correlation. Even better entry on a retest – those are my favorites and usually offer great setups with little risk. Again, you may get whipsawed a little – that’s part of the game.

Speed & Velocity

What I have not covered here is speed and velocity – obviously participation and momentum drives both. Velocity has direction – speed does not. A slow moving market may have slower rocket periods and also more complex honeypot/limbo periods. Which however means that speed remains the same (well, it was slow to begin with) and now velocity slows down.

A fast moving market with a ton of participation and volume may have exceedingly profitable rocket periods while honeypot/limbo may be more or less obligatory. So speed was high to begin with and velocity only decreases slightly. This is obviously a deep subject that may enjoy more attention to detail. I may also be amiss by not pointing out that market weather patterns should be essential for anyone considering to trade options – for rather obvious reasons I hope.

Now for the subs here are a few charts that make my point about this being limbo territory:


More charts and cynical commentary below for anyone donning a secret decoder ring. If you are interested in becoming a Gold member then don’t waste time and sign up here. And if you are a Zero or Geronimo subscriber it includes access to all Gold posts, so you actually get double the bang for your buck.

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Cheers,

This entry was posted on Sunday, June 10th, 2012 at 9:45 am. Both comments and pings are currently closed.



  • captainboom

    Nice work Mole.  Gives me something to ponder while I work on an otherwise beautiful day.

  • http://profile.yahoo.com/YLMPTAQGAPJI5AP2UTXDH3F53U emidub

    Great read, mole.  Thank you.  So S&P gets above 1330 and we’re in rocket mode I presume?  Or is it honeypot mode?  If all the confidence holds through Mon. morn, S&P should easily breach 1330 to the upside, if not get there on a gap open.  So if you were short over the weekend, do you cover immediately or wait for the honeypot pull back?

  • http://evilspeculator.com molecool

    Rocket – I should have mentioned that they are usually triggered by a price inflection point.

  • Joe_Jones

    Really great post Mole.

  • AMCabrera

    very excellent post Mole thank you very much. You explained this very well. BTW guys EUR/USD is at 1.2623-48. Already very near my checkpoint and the markets are not open yet…This will be very strange open.

  • tradem4alpha

     1.26 something? very big gap up considering that it closed Friday at 1.252

  • http://profile.yahoo.com/X3UHQ24EPYQVH62MCJVJM4KIJI peter

    I missed getting stopped out below the NLSL by 1pip so I am long EUR.  Not a lot, unfortch, but happy I took Mole’s rec.  SPX and Gold should rip on that.  JMO.

  • AMCabrera
  • AMCabrera

    OH wow forget it I must take profit here. No need to wait.

  • AMCabrera

    bad slippage in USD/NOK. I had a sell order at 6.03100, and was triggered at 5.9900 (short)

  • AMCabrera

    resetting USD/NOK I do not like how I was “slipped” that order. Resetting around the price action one above 200 pips normal lot one below 100 pips half lot.

  • aussiebinlaughin

    Great post, one of my favourites. Thanks.

  • Th3_ACist

    That’s awful…Oanda?

  • http://profile.yahoo.com/X3UHQ24EPYQVH62MCJVJM4KIJI peter

    Man this market loves bailouts

  • http://practicalt.blogspot.com/ Darth_Gerb
  • newbfxtrader
  • amokta

    /es up ~ 20 points
    Lets see if this is a short opportunity, or if it has legs to the upside

  • newbfxtrader

    Read Moles post. you know what to do.

  • amokta

     Yes, excellent post!

  • AMCabrera

    It must be the pair. Less liquid.

  • AMCabrera

    Going long here eur/usd since it is near ##30 handle. 30 pips stop loss.

  • StrikeFirst
  • StrikeFirst
  • AMCabrera

    Not worried 30 pip stop loss. 1.2700 is where I’m forced to lay off the throttle

  • amokta

    In the grand scheme of things, a gap fill at least might be on the cards
    The euro had a bounce, but big deal?

  • StrikeFirst

    “Trading is like a butterfly. Chase it and it eludes you. Instead, sit down quietly and watch it come to you. — The Mole”

    ——————————–

    Reminds me, for some reason, of the scene in Rocky where Balboa is running around trying to catch the chicken.

    Is that not the perfect visual representation of the retail trader?

    I know – that was ME for the longest time.

  • amokta

    Mole is (c) signing  his own quotes :-)

  • newbfxtrader

    Nice quote Mole. You should put it on the banner up top!.

  • newbfxtrader

    Are you leveraged to the hilt? Why do you keep booking profits? Can you explain why you dont just keep moving your stops up? I figure you have been long since 1.24ish.

  • http://profile.yahoo.com/X3UHQ24EPYQVH62MCJVJM4KIJI peter

    Newb question.  Looking at /CL it appears that there is an NLBL at 86.27 based on the three lower lows from that Wednesday candle on.  Or does the higher daily high of Thursday obviate it?  I ask because that line is in play right now.

  • AMCabrera

    Well, good question. But you have to realize we are up nearly one hundred pips I took profit. Going long again at 1.2635 with 30 stop loss is another way of trailing imo.

  • http://practicalt.blogspot.com/ Darth_Gerb
  • AMCabrera

    Peace be with you my dear friend.. :)

  • newbfxtrader

    Hmmm ok thx. I am always conflicted on when to book profits vs “letting your winners ride”.

  • AMCabrera

    Before i go to bed. I want to thank Mole again for this most excellent post and for providing a safe haven from the MOCKERY out there in the trading blogosphere.

  • http://practicalt.blogspot.com/ Darth_Gerb

    nightie night.  I mean sweet dreams.  I mean…hell – I don’t speak Carolinian. ;-)

  • AMCabrera

    HAHA. We need to threat secession again that could boost for the euro as a safe heaven uh lol!

  • http://practicalt.blogspot.com/ Darth_Gerb

    (hat tip to to JJ from two days ago –
    we are coiling up for a big move IMO
    )

  • http://practicalt.blogspot.com/ Darth_Gerb

    the bullish hyper-jump will make the fib line a support.

    http://s8.postimage.org/jppd1rtbn/temp1.png 

  • Skynard

    Went short /ES to hedge longs:)

  • newbfxtrader

    Thought you went to get some fancy dinner today!

  • Joe_Jones
  • http://practicalt.blogspot.com/ Darth_Gerb
  • AMCabrera
  • Skynard

    Not so crazy about bear steak:)

  • Skynard

    1340.88 is 50% of the move from 1419.75-1262

  • newbfxtrader

    Ah ok. Seems like other markets got sold off more than ES. Say for example Aussie. If we have bottomed I think we make new highs on ES.

  • Skynard

    Just holding to Euro open in case market starts it’s funny business and fills that gap to 38.2% (1323)

  • ds2

    I knew we would have to gap past the volume hole.

  • ridingwaves

    great post…..I’ve knocked the bar over a lot…

    http://www.youtube.com/watch?v=ibjHm7tvw2I 

  • AMCabrera

    The 4:30 am tickler got me again. Stop out. Resetting now for EUR/USD. USD/NOK is triggered.

  • http://iberianviews.blogspot.com/ catracho

    Well the word on the street here is Spain is saved !

    ..
    .
    .
    (at least for today!)

  • http://iberianviews.blogspot.com/ catracho

    I’m guessing a lot will fade this move so probably goes higher ?

  • AMCabrera

    claro que si. Mira donde esta el EUR/USD. el opinion mio es que estamos serca para comprar de nuevo.

  • http://iberianviews.blogspot.com/ catracho

    si..estoy contigo!

  • AMCabrera

     tengo dos entradas para comprar uno de 1.2530 Y 1.2630. por ahora esperamos vale

  • Skynard

    Reversed /ES +6

  • AMCabrera

    well nice to see you sleepy head.

  • http://iberianviews.blogspot.com/ catracho

    ok

  • Skynard

    Little woosy, big grad party for my son this W/E:)

  • AMCabrera

    ew. hangovers 

  • AMCabrera

    would someone please remind me. Since it is looking like we have one of that there so called gap-filled for the EUR/USD. What exactly does that imply?

  • amokta

    I like this post. Even though it isnt outlining a specific trade setup, it is far more valuable.

    Give a man a fish, and he will eat for a day, give a man a gun, and he can rob for a lifetime :-)
    (edit – ok , im not advocating violence! – just a joke, but having the right tools/psychology for trading is valuable!)

  • neowave

    AMC, my oanda is almost up and running

    but I’ve noticed you can’t trade everything… like sugar for example
    you use another platform to trade this or you just don’t trade it?

  • http://evilspeculator.com molecool

    Hey – a favor – can you guys retweet this post? Thanks!!

    (press the tweet! icon on the top right at the beginning of the article)

  • http://evilspeculator.com molecool

    It’s a Sunday post – I don’t do setups on Sunday. How long have you been a sub?

  • http://evilspeculator.com molecool

    Corran! La Migra!

  • http://evilspeculator.com molecool

    BTW, anyone who liked this post will be severely punished. You all know I don’t respond well to praise…

  • http://profile.yahoo.com/X3UHQ24EPYQVH62MCJVJM4KIJI peter

    Er… bonds took it all back and then some.

  • AMCabrera

    I do not trade commodities at all. No need for me to hedge commodity prices and for sure not going to speculate on it. ;)

  • AMCabrera

    triggered 1.2530 long 50 pip stop loss.

  • amokta

    Oops..my bad :-)
    Not a sub (well, on and off, but not just now)

  • amokta

    One minutes markets ‘rally’ on relief of Spanish bailout, next minute, market gives up gains on ‘worries’ of Spanish bailout (news, you gotta give it to them, lol!)

  • captainboom

    Liked.

  • aussiebinlaughin

    yep, im interested to see if 1330 becomes support now, if it hits once, i will wait for a retest and become bull for a few days. 

  • aussiebinlaughin

    And its a ‘credit line’…not a bailout…big difference…(cough cough)

  • http://profile.yahoo.com/YLMPTAQGAPJI5AP2UTXDH3F53U emidub

    so did the S&P rocket hit its apex last night after breaching 1330 and now coming back to earth or is the rocket merely fueling up?  

  • AMCabrera

    lol ooh I see now USD/NOK is near 6.03. fuckers. still holding that short and just added another half lot here short.

  • AMCabrera

    http://content.screencast.com/users/AMCabrera/folders/Jing/media/5f0b2709-3588-4d40-b6c5-c62fc3cf4100/2012-06-11_0830.png
    Omg look spanish yeilds are rising. Omg this means you have to use the “buy the rumor sell the fact” method. Yea I’m clearly being sarcastic. The chart IMO tells me we are still WELL of the highs.

  • DarthTrader

    Do Yourself a Favor, Don’t Prejudge,  Look at these two simple Charts
    Read the notes below and on the charts themselves.

    Closer look at Venus Retrograde on a Daily Chart.  Note the Low between the Double Top occurred about halfway thru the Actual Retrograde period back in 2007, which appears to be the current situation.  Also note that in 2007 an Inverse Head & Shoulders formed yielding a rally up to the all time high / double top.  That Final High was within 2 days of when Venus returned to the Degree it went Retrograde as noted on the chart below.  Should the market continue to hold somewhat close to this format then market could sell off this week back down to the May 18th Levels thus forming an Inverse H&S setting up a final rally up into the July 31 timeframe.
     http://www.screencast.com/t/IJb9ucKk8b

    15 year Weekly Venus Retrograde Chart (link below) gives a broader perspective show where Venus Retrograde nailed the 2 lows of the last Decade TO THE DAY . . . Oct 10, 2002 & Mar 6, 2009 and the Double Top of the 2007 Highs.  Yes, that is right a minor celestial event clearly timed the High and Lows of the 2000 Decade!  This chart also shows that all Venus Retrograde periods do not call major market highs or lows for the simple reason that this event occurs every 1 1/2 years and the market tends to need more time between major highs and major lows.  Although the last High only needed 1 Cycle between Venus Retrograde Periods to reach the next Major Low.  Should the market hold true to that precedent then the next major low could be Dec 21, 2013.
    http://www.screencast.com/t/2lpcpoGk8e

  • amokta

    Decision for me is whether to close out small short from friday (and be
    thankful, market has come back), or to hold short (with tight stop)
    Are we in ‘limbo, rocket, or honeypot – lets ask honey badger :-)
    (edit – mole in post above says limbo bet. 1270 and 1330)

  • http://evilspeculator.com molecool

    Report to the dungeon.

  • amokta

    Three thoughts
    1) could it all be (celestial!) coincidence
    2) what about 1999/2000 top – appreciate you say Fed pumped y2k, still
    3) What is the rational basis for planetary movements affecting life/trading on mars (appreciate that we dont know everything in the universe, and simply because we don’t have an explanation, doesnt mean it isnt true!)

    Valuable info though :-)

  • captainboom

    The masochist said “Beat me, beat me”, and the sadist said “No”.

  • http://practicalt.blogspot.com/ Darth_Gerb
  • http://evilspeculator.com molecool

    If you were a sub you would know. And don’t you go fishing here, Mr. Cheapskate! :-P

  • Joe_Jones

    Morning rats. Wow what a retrace overnight… Makes it harder to breach that volume hole.

  • http://practicalt.blogspot.com/ Darth_Gerb

    I won’t deny it works.
    putting on the mind of Volar….
    notice that only 4 of 9 retrogrades correspond.
    essentially, it’s a crap shoot of slightly less than 50%.

  • Schwerepunkt

    Would love to see a smack-down back to the 1300 level. News chasers/followers should be punished. Italian and Spanish yields are still rising. That’s a fact, not news.

  • http://practicalt.blogspot.com/ Darth_Gerb

    any chance of a Rule 48 this morning?

  • http://profile.yahoo.com/2B2XDGXT72ERXBJ47ROUSWWDME JBH

    I am back here after an absence.  I thought one of the tenents of this site was “News does not matter”.  Is that the case?  If so how would this weekend be explained?  Thanks.

  • AMCabrera

    Easily the chart was already calling for the massive move up Friday evening The Eur/Usd was still moving, which does not mean up or down just really bad volatility.

  • amokta

    LEI (SIMO) making sharp move to downside!

  • DarthTrader

    On the other hand . . .Of the major highs and lows shown on this chart of the last 15 years it nailed 75% of them and potentially 80% of them if the current one is also accurate.

  • DarthTrader

    Dentist bound . . .

     to get my Fangs cleaned and sharpened

  • amokta
  • Schwerepunkt

    The answer is: no.

  • ds2

    Whats Rule 48?

  • Schwerepunkt

    There are societies where people actually file their teeth to make them sharp and pointy. It’s an aesthetic thing like big boobs, buttocks implants, face-lifts, etc.

  • Schwerepunkt

    License to cheat.

  • tradem4alpha

    IWM underperforming SPY; when the futures opened Sunday, Russel futures were outperforming by 0.5%; now clearly underperforming; starting to look more and more like a trend down day.

  • http://profile.yahoo.com/YLMPTAQGAPJI5AP2UTXDH3F53U emidub

    IWM just went red.  yikes.  

  • Skynard

    Stopped out. Long again on 1320 test

  • MrMargin

    Problem is you will only know in hindsight if it was a major high/low. If you presuppose that it is a major and ask how big of a chance this idea has to catch it, you’re asking the wrong question, because you take into account information that will be only available after the fact. What you need to know is the a priori chance of this giving you an edge and I have to agree with DG on this.

    A lot of things seem to work well in trading if you only look at the instances when it worked, but that’s IMO just another example of confirmation bias. I believe I read the term “the well chosen example” for this in some book by Jack Schwager. The more important question is when it didn’t work.

  • AMCabrera
  • Joe_Jones

    Well I don’t know what you rats think of the tape, but the way I see it is that we should have breached the volume gap and rocket higher, but that didn’t happen. So, I expect the move to go into reverse. I am 1/3 position short now and will add in more shorts if ZL shows participation in the move down.

  • Skynard

    Shinanigans, Europe still up:)

  • AMCabrera
  • ds2

    No trend day alert?

  • Joe_Jones

    I haven’t received mine yet

  • http://profile.yahoo.com/YLMPTAQGAPJI5AP2UTXDH3F53U emidub

     The tape smells.  Been watchin IWM price action all morning and the gap and crap move looks convincing.  has hit a limbo here at 76.75 (draw in confused bulls).  targeting 76.25 near term. 

  • amokta

    Hopium after effect, in Europe?

  • ronebadger

    no gots

  • beentohardknocksU

    Given enthusiasm of last night, this is looking like a failed breakout that could presage more to come.  I am riding EURUSD short for a spell – see some possible support around 1.24875 that I will use as a target for now.  We may be in for a short bounce around here, but I see the downward pressure continuing if some strong buying doesn’t emerge soon.  

  • Joe_Jones

    Looking at the TICK numbers, it doesn’t look like a trend day. However, the trend day alerts mess up my trades lately, so I don’t pay attention too much to them anymore.

  • captainboom

    Mole must have dispensed with the blue light special arrow on the opening candle.  I missed seeing it on the Mole indicator at the time, due to a phone call, but it would have been a nice short on that first /ES candle.

  • AMCabrera

    Not going to waste my time with this long EUR/USD taking it out. replacing it at 1.2530 and Ill have one waiting at 1.2480 where my stop would have been.

  • AMCabrera

    No longer have spy position. back to the graveyard then.

  • beentohardknocksU

    That means you are looking to go long at 1.2480?  It’s coming your way fast – just touched 1.2500 a couple of times.

  • AMCabrera

    Yea I figured it would lol. Thats why when I looked at it just a moment ago I said mmm lets see take my stop go back to 1.2520ish. SOO instead I will go long at 1.2480 and take profit at 1.2520ish

  • http://practicalt.blogspot.com/ Darth_Gerb
  • Skynard

    Adding /ES long, hourly wedge looks to be holding.

  • Joe_Jones

    good obs

  • beentohardknocksU

    I got out of my short a bit before my target.  ES is looking like it wants to nibble at VWAP here.  Seeing a bit of a positive div. on 5 min zero – nothing to bet the farm on yet though.

  • http://practicalt.blogspot.com/ Darth_Gerb

    unapproved comment?
    A moderator needs to approve this comment before it will be published.
    WTH?

  • http://practicalt.blogspot.com/ Darth_Gerb

    EvilSpec has a resident Dentist.
    talk about services!

  • AMCabrera

    aw barely missed me.

  • Skynard

    Big Brother:)

  • http://practicalt.blogspot.com/ Darth_Gerb
  • Schwerepunkt

    Was it salacious? 

  • Schwerepunkt

    Akin to the Seigfried Line, Mannerheim Line, Maginot Line,  Gothic Line, Bar Lev line? They all failed in the end. And there are many more where those came from.

  • tradem4alpha

    IWM still massively undeperforming…

  • http://practicalt.blogspot.com/ Darth_Gerb
  • http://practicalt.blogspot.com/ Darth_Gerb

    nope.  not even a URL.
    plain text.
    maybe it was the % sign.

  • http://practicalt.blogspot.com/ Darth_Gerb

    by it’s definition isn’t IWM massive?

    aren’t the Q’s suppose to lead?

  • bdoone

    Bear Food for Thought: Scott Chronert of Citi Investment Research reports that Russell MidCap Index stumbled nearly 7% in May, 2nd worst May ever.  In the 21 past instances where it fell that much, the index fell another .5% in the ensuing month.

  • amokta

    Where has the Juju gone?

  • simonn1080

    good lord talk about bulltard slaughterfest over night.. ouch

  • tradem4alpha

    some are using the spread (IWM + QQQ)/(SPY+DIA); it goes up good, for the market in general, but I like to compare a cumulative return for IWM and SPY over a 5 day period; IWM underperforms, SPY follows; IWM overperforms, SPY follows.

  • Skynard

    Have a look at Fridays bull flag and compare to current!

  • Joe_Jones

    VWAP and ZL action is key for the rest of the day IMO

  • Joe_Jones

    AUDJPY looks weak now

  • Joe_Jones

    I’m ready to add some more shorts

  • Joe_Jones

    alright, diving in

  • tradem4alpha

    that RUT 2000 futures daily chart looks very ugly

  • amokta

    Don’t fight the Juju!
    I was short from friday, closed b/e, then short again since last 1-2 hours

  • StrikeFirst

    Too many people think they can fight the Juju.

    But the Juju cannot be defeated.

  • ronebadger

    I’m a little fuzzy on “Juju”….would that be related to Jujube?

  • amokta

    Schwerewpunkt is the expert on ‘Juju’ and related topics :-)

  • http://profile.yahoo.com/X3UHQ24EPYQVH62MCJVJM4KIJI peter

    Oil flameout clouding my view that ZL posted a divergence between the morning and afternoon lows

  • http://evilspeculator.com molecool

    ¤ø„¸¸„ø¤º°¨¤ø„¸¸„ø¤º°¨ 
    ¨°º¤  S H A K E   N ¤º°¨ 
    ¸„ø¤º° B A K E !“°º¤ø„¸
    ¸„ø¤º°¨¤ø„¸¸„ø¤º°º¤ø„¸

  • amokta

    Looks like one more juju leg to the downside left! 

  • http://evilspeculator.com molecool

    When are you going to shut up about that juju stuff – jeezzz – LOL

  • http://evilspeculator.com molecool

    Jeezes – I’m going to knock some heads soon…

  • amokta

    Oil / UCO breaching recent lows




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