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A Cunning Plan
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A Cunning Plan

by The MoleMay 3, 2016

Equities are not looking so hot right now. Especially the hourly panel looks like a veritable war zones, with spikes, trenches, and traps resembling the Western front during WW1. So even thinking about a long position here most likely sounds just as appealing as any of Baldrick’s ‘cunning plans’ featured in the series Black Adder. As a personal side note – if you have been tragically born without a sense of humor then there may be hope for you. Just treat yourself to a season or two of Black Adder and I promise you’ll be the life of the party next time around. Either that or they’ll have you committed.

2016-05-03_spoos

Anyway, taking out a long position here has a pretty low probability of success, but on the upside (pun intended) it has a pretty good risk/benefit ratio. In other words – it’s a last chance Hail Mary pass for the bulls. For if we slide much lower then I think gravity will once more draw us toward 2050 and below.

2016-05-02_zero

Over the past week or so we’ve seen possible signs of distribution and although that in itself is not always a harbinger of instant downside the recent price pattern makes it a definite possibility. That said – the Zero signal yesterday was pretty supportive with signals touching 1.5, so quite a few people are going to find themselves stopped and reaching for extra caffeine out this morning. Which may just be good for a little bounce higher, so let’s see what happens.

2016-05-03_NG

More fun with futures – we’ve got sevearl juicy candidates today actually. Natgas is retracing some roll over freakiness and I’m waiting for a touch of the 100-day SMA which also puts us near the round 2.0 mark. Which means I’ll grab a long around 2.004 with a stop below 1.97.

More below the fold for the subs:

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About The Author
The Mole
Mole created Evil Speculator amidst the chaos of the financial crisis in early August of 2008. His vision for Evil Speculator is a refuge of reason, hands-on trading knowledge, and inspiration for traders of all ages and stripes. You can follow him and his nefarious schemes at the usual social media waterholes.
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