Easy Tape

A little bit of a shake out today but I must say I absolutely love this tape! We are at clearly defined inflection points across the board and it’s time to get busy. Put on your 3D goggles – it’s chartin’ time!

Today’s general theme will be that of support and resistance – what’s even better is that we are in sync across our four major food groups (e.g. equities, bonds, forex, commodities). Here’s are the spoos which are clearly testing the 25-day SMA. Thus far it has been holding and if that hourly BB manages to swing up then we may just see some more upside. Obviously a drop below that SMA would be a first since last July – a possible short setup if we close below.

Gold – boy, that is one bullish chart. Just look at today’s morning spike – of course we retraced that a bit as we should. If you even catch a candle like this – take profits! Anyway, I find it astounding that the outer 100-day BB is now acting as support. Will it hold? I have no clue but as long as it does be long the shiny metal.

And ditto on silver. Again, if you catch a huge hourly candle like this take profits and wait for a retrace before dipping back in. That is Evil Rat 101, folks.

Crude – also has been testing support and today was a tentative attempt at breaching its NLBL – which failed. Whichever side wins here is the direction we follow – and the distance is a lousy three handles.

Copper – similar sentiment as on gold – strong moves here and I’m stunned we are not even dipping below the 100-day BB. Follow it up until it breaks. By the way – if you look at the hourly panel – this is the type of BB swing I’m looking for on the E-Mini.

Support on coffee is now well established and I think we are good to go until 188.

Sugar – breached resistance – a bit too fast for my taste. Not sure if we get a retest but if we do I’m long.

Bonds – at resistance. I want to see a breach here but who cares about what I want. I will take a short if we drop below – no directional bias here as bonds have been a bit of a PITA.

Corn – wow – what can I say – PERFECT entry! I am sure very few of you dipped into this contract last week but heck – I did report that SMA touch. It’s up to you to take those entries 😉

Currencies – EUR/AUD is holding the 25-day SMA – this is really becoming en vogue here. Bullish.

And yes – more setups for those paying steel rats. You asked and the Mole shall deliver:
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The Dollar is trying hard but has thus far not been able to overcome it’s own 25-day SMA.  If it spends too much time here it’ll get swatted down again. Good territory for short exposure with a cheap stop above the SMA. If she hops over the fence I definitely want to be long. This the first real resistance test for ole’ bucky in a long time and it needs to show strength.

USD/CHF – right at the SMA – great short as it seems to be running a bit out of juice. Yes, I would take a long breach.

EUR/USD – we have hourly and daily support here. I think the hourly SMA makes for a great long entry and I love it how it lines up with the daily SMA.

EUR/JPY – once again the 25-day vs. the NLBL. I’ll pick the winner. BTW, if you’re a noob then consult the cheat sheet for information on how to trade Net-Lines.

We have a dropping 100-day and a rising 25-day on EUR/CAD. Plus there’s a NLSL which may provide support. I’m thinking long here if the 25-day is starting to push prices higher.

Soybeans – seems we may produce a more pronounced SMA test here. If we do then this is great territory for long positions. Keep an eye on the hourly BB bands – if they start dropping more steeply this may turn into a short.

Cheers,