Target Practice
Target Practice
The past week has bestowed us with several beautiful targets – every so often patience combined with discipline pays off:
Corn hit our first target area at 690. That was one profitable move and is one for the books. I know many of you had a hard time pulling the trigger all the way down there but this comes to show that systematically taking entries does pay off over the long term.
Crude also bounced up to our first target area. Where does it go next? I think it’s running into some resistance here but there’s little edge at this point so we move on to our next victims.
Before we do that I would however like to ask a little favor:
Seems like investimonials is vetting trading blogs against each other and asked me to have my readers post some of their own experiences. Now, I saw a few partially favorable comments over there but it’s clear that none of them have been following my work in the past two years, in particular as subscribers. So, if you guys could head over there and post a little review it would be greatly appreciated. Many thanks in advance 🙂
[amprotect=nonmember] Charts and 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 subscriber it includes access to all Gold posts, so you actually get double the bang for your buck.[/amprotect] [amprotect=1,13,9,12,5]
So, diagonal support on the SPX was successfully defended – thus far. As you know summer is a bit of a chop zone so you can’t ever be too comfortable about a directional move – thus we take profits early. Right now the onus is on the longs to drive the tape up to a new high – anything in between is nothing but market maker chop suey.
The spoos don’t show much of an edge on the daily but there are some interesting net-lines on the hourly (left panel). If we can remain above those net-line sell levels (NLSLs) then we may be able to overcome resistance here, which admittedly is rather strong.
Silver is suddenly in an interesting spot – it somehow managed to overcome resistance and the way seems clear to hit 44, assuming we stay above the 38 mark. However, when looking at Gold I am less excited about this trade:
As you can see Gold has been driving up hard and is now in what I would consider a good target area. So, if Gold bounces back here (not a given but a possibility) then it’s quite possible Silver will snap back as well. Thus I would not recommend a long trader in Silver at this point.
On to currencies – on the AUD/USD the daily candle is attempting to overcome two NLBLs. If it pushes beyond those we may make it to 1.1000. It’s a 50/50 odds situation frankly – like so many setups right now. Currencies, metals, equities – everything is now near a resistance cluster and I expect a lot of chop.
NZD/USD – also near a NLBL – similar situation as in the AUD/USD (sorry, wrongly stated on the chart). Maybe a reverse trade here is what to watch out for as I don’t see much edge to the upside.
USD/JPY – the destruction of the Dollar continues. We pushed outside the 100-d BB and I think it’s time for a little reversal. However, since it’s a notorious currency pair I would be cautious and wait for an inside candle first, or anything that tells us that we may see a turn. On the hourly a push above 79.36 would give me a bit more confidence that a floor is in the making.
Cable popped some viagr after pushing outside both of my BBs yesterday. Sorry, I didn’t see that one as I was too busy arguing with my damn hosting company (see wrap up below). I think it’s looking pretty bullish here and if it can overcome the 1.615 mark then we should be good to go until 1.625. Admittedly there is a bit of resistance looming ahead and if you are long then make sure to exert discipline. We need to close above 1.6078 for the current Net-Line buy signal to remain valid.
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Public Service Announcement
Finally a quick house keeping item. In the past two weeks I have had a lot of trouble with my hosting company and after three years with them I think it’s finally time to consider the unthinkable, which is taking my business somewhere else. Most likely this would happen either this or the next weekend. Either way it’s going to be a royal pain in the ass but the way it is right now I’m spending half my day battling technical problems and that’s simply unacceptable.
FYI – I’m considering Inmotion Hosting – if any of you have any experience (good or bad) with those guys then please chime in here in the comment section. There are a lot of fake hosting company reviews out there these days and you really can’t trust anyone anymore – it’s a doggy dog industry it seems and good hosting firms are few and far in between.
Cheers,
Mole
