Not So Fast!

And that is why I told you guys to stay out of equities not so long ago. There was absolutely no reason for today’s little shake-out except for the most obvious: Too many piggies were pushing to the trough and as such the litter had to be culled a little.

Not that I would even call this a reversal – more like an obligatory pullback to release some overbought conditions. I think the bulls are okay here as long as the 100-hour holds around 1737.5. A drop lower still may be caught by the daily NLSL at 1727 – and unless that one breaches there’s not much to talk about here.

Pretty smooth sailing here all day – concerted sell-off in the morning and now we’re pushing sideways. If this thing has legs we’d have to see quite a lot more. Again, wake me up when we’re at 1327 – until then we’re talking reload. FYI – the weekly NLBL on the ES is at 1707.5.

So let’s talk setups – the getting is pretty good today so let’s roll up our sleeves. Crude dropped pretty hard again today and it’s now kissing its 100-week SMA and then bounced back. So I’ll take 1/2 R long here with a stop below the SMA. Disclaimer: this is a very speculative position – low probability setup with potential high payback. Not everyone’s cup o’ tea but we’ve nailed a few of these in the past.

More below for the subs – grab your secret decoder ring:

It's not too late - learn how to consistently trade without worrying about the news, the clickbait, the daily drama and misinformation. If you are interested in becoming a subscriber then don't waste time and sign up here. The Zero indicator service also offers access to all Gold posts, so you actually get double the bang for your buck.

Please login or subscribe here to see the remainder of this post.

Cheers,