The Wrath Of Draghi

A lot of traders are bitching about Draghi today whose comments, as you probably know already, launched a huge short squeeze on the EUR/USD. What few are talking about however is his impeccable timing as being a Euro vigilante had become an extremely crowded past time as of late.

Here’s a snapshot of Draghi on the bridge of the ECB  headquarters. As you can see he is dressing the part as he knows that things can get messy once currencies make a sudden u-turn turn.

Well, as the old saying goes – one persons pergatory is another’s heaven or the other way around. The big move in currencies punched a lot of our pending setups toward their inflection points. Thus we have a LOT of setups to attend to – so let’s get cracking. Here are the spoos – right at their NLBL – obviously a breach here would be bullish – you know what to do.

Due to the volume of setups I am just going to provide minimal guidance today – I think all you guys know the drill by now. If you are new and confused then feel free to discuss any setups in the comment section. Anyway, NLBL breach on silver – which means it is now officially a long (unless this changes by the close).

Gold still holding out – frankly, as non-biased as I am – I really would love to see a long breach here as this thing is coiled up like an old swiss watch.

One more for free – ole’ bucky right at its NLSL – pretty much the inverse of the spoos. Love the inverse mirror setups – structure your trades accordingly.

Copper – not an immediate setup but if we push higher on the equity front I would love to see copper follow suit. So watch that NLBL which served as a brick wall today.

Coffee is holding support nicely – still a good long but bear in mind that the 100-day is still dropping. So we need to see a break out here in a day or two.

Sugar – sliced through the NLSL and almost touched both SMAs. I would wait for a retest of the SMAs and then try a long.

10-year treasury futures – interesting NLBL/NLSL combo here. Which means we treat the ~134.5 mark as support until it breaches.

Soybeans delivering a triple setup combo with fries and a free coke. Inside Day + NR4 + NLSL retest. Not sure which way it’ll swing but it should be interesting.

On to currencies – AUD/JPY right another NLBL/NLSL combo – a breach of the NLBL would be interesting. But what really should get things going would be a 100-day SMA breach. Of course we would take a short position here as well if it remains stuck below both net-lines.

AUD/USD – NLBL breach – that’s the entry.

CAD/JPY – NLBL breach.

EUR/AUD – not ripe just yet but I am waiting for a NLBL here as well.

EUR/CAD – tried to breach its own NLBL but computer said no. Keep an eye on it.

EUR/USD – we are also waiting for a NBL breach here. Apparently currencies are in sync across the board here – should be interesting once it resolves.

NZD/USD – also a NLBL breach already in the making.

USD/CHF – we are waiting for the inverse here – a NLSL breach. You can be long until that happens but don’t hesitate to flip her around and try an inverse position 😉

Get to work steel rats!
[/amprotect]

Cheers,