Discretionary Trading
Now Reading
Always Follow The Money
36

Always Follow The Money

by The MoleOctober 9, 2017

Before you do anything else I encourage you to catch up on my previous post which covers this week’s top and bottom performing stock symbols in the S&P 500. I’m actually considering to add small caps as well to widen our stock universe by a bit, what do you guys think? Anyway, today is a bit of a strange day here in Valencia as the 9th of October is officially a ‘día festivo’ celebrating the arrival of Jaume I ‘El Conquistador’ on this day in 1238 who managed to end several hundred yeas of Muslim rule over the region. However it’s fair to say that the mood here is a bit somber today as the situation in Catalonia is increasingly spinning out of control with Spanish president Rajoy threatening to use the ‘nuclear option’, meaning that he is prepared to rescind Catalonia’s autonomy status.

Spain was just finally coming out of a nasty depression which over the past decade caused over 40% of Spanish youth under 25 to remain unemployed and without much hope in terms of future career prospects. Which is why there is probably very little patience with what in most parts of Spain has long been considered a meddlesome and irreverent region hellbent on pursuing its dreams of independence.

Always Follow The Money

Whether or not Catalonia’s ambitions are justified is another story but I don’t think that they have a snowball’s chance of succeeding. Especially after several banks and other large employers in the region made it clear over the weekend that they would move their headquarters to either Madrid or other larger cities within Spain should the push for independence wind up succeeding. And that’s how the cookie crumbles, like it or not. In the end things always boil down to the where the money flows. And apparently the money right now is clearly not betting on Catalonia.

2017-10-09_spoos_update

So we seem to have been graced by luck last week as our trailing stop managed to survive what now looks like a little EOW stop run. For now I’m leaving my trail intact as it has served us pretty well.

2017-10-09_gold_update

Gold however wasn’t so lucky and that late day stab down almost exactly nailed my trailing stop. Fortunately I have access to several local churches right around the corner where I am able to repent for my excessive use of foul language after seeing it bounce right back shortly after.

2017-10-09_soybeans_update

Soybeans seems to finally be getting out of the gate but it’s still a bit too early to touch my ISL. I want to see at least 1R MFE before pushing it to break/even.

2017-10-09_ZN_update

ZN futures also were stopped out as I had suspected already on Friday morning. However this actually represents a rare re-entry opportunity which I’m going to cover further below.

2017-10-09_USDCHF_update

USD/CHF – I bet you almost forgot about that one as it’s been pushing sideways for most of the past week. But after a spike into ~1R MFE it’s now finally time to at least lock in our entry, i.e. stop goes to break/even.

2017-10-09_USDCAD_update

USD/CAD pretty much unchanged and our trailing stop remains at ~3.5R MFE. Thus far lighting a few candles seems to be staving off the stop runners. Let’s hope our luck continues.

2017-10-09_ZN_entry

Alright as indicated above I’m grabbing another entry on the ZN, once again it’ll just be 0.3R as this is a bit of a lottery ticket. Stop goes to below 124’220 which is near a recent spike low that managed to bounce off the lower 100-day SMA. I actually do not put much stock into that one as it hasn’t been touched for a while and my main criteria and raison d’être is what appears to be pretty strong rejection of the 124’240 mark.

evil_separator

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.


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.
Enjoyed this post? Consider a small donation to keep those evil deeds coming!

BTC: 1MwMJifeBU3YziDoLLu8S54Vg4cbnJxvpL
BCH: qqxflhnr0jcfj4nejw75klmpcsfsp68exukcr0a29e
ETH: 0x9D0824b9553346df7EFB6B76DBAd1E2763bE6Ef1
LTC: LUuoD6sDWgbqSgnpo5hceYPnTD9MAvxi6c
PayPal: https://paypal.me/evilspeculator