And That Is Why We Follow The Charts

Last evening I proposed that the ongoing shake out was merely an attempt to scare the children. Seems like my bold claims weren’t that far off the mark as our support lines held up just famously. And that, my dear ladies and leeches, is why we follow the charts.

And further earning my keep here I also proposed a nice long opportunity on the E-Mini this morning. I hope you took it as it’s now time to take partial profits. Actually since I took this snapshot it’s been pushing higher and is almost at target – time to cash out. You are welcome! Evil is as evil does 🙂

Strangely enough – the recent gyrations on the VIX have us now two steps into a, believe it or not, bonafide VIX Buy Signal. That’s relative to equities by the way – meaning if we get one more lower close tomorrow odds suggest that equities will be heading higher in the course of the coming week. A bit of a head scratcher, this – but the rules are the rules. My condolences to all you hobby bears.

Also worth noting – as I’m writing this we are technically painting an inside day on the E-Mini.

Dollar update – once again our chart was treating us well. You subs may recall the ‘last kiss goodbye’ I was proposing on the DX and thus far that’s exactly what’s playing out. However there is a NLBL right above and if we would breach it in the coming three days then we do have a technical buy signal. Again, mind the two daily SMAs above which would most likely provide additional resistance.

Another example of why we fade the news and follow our charts. Gold has been painting this interesting little diagonal with the 25-day at its center over the past few weeks. Although there really isn’t much edge in playing this configuration on a daily basis I suggested to you (i.e. my subs) that playing the swings was definitely worth it. I hope you paid attention and banked some coin today.

Sugar triggered its lower inside day trigger. Good entry and you ought to be short now.

Let’s sling some stock symbols today – in my never ending quest for market domination I managed to run into a few keepers:
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One commodities and one FX setup before we get to the stock symbols. Soybeans, so well behaved and it’s slowly creeping over its 100-day SMA. Also painting an inside day today – how perfect is that? Use those triggers tomorrow.

USD/CHF – inside day after some interesting candles which may suggest a big move is coming. Use the ID triggers tomorrow, as usual. I do like the context here as we could get a squeeze either way.

AZO – inside day near the 100-day SMA – awesome!

CCJ – technically that’s a repeat but it’s been holding the line and if you snoozed the entry thus far you may want to jump in now. I would be out if we drop through yesterday’s low.

Double inside day on CME – loving the context here as well as this has been one massive short squeeze.

GOOG – almost the same setup but today we technically already breached one way and then pulled back. I still the current triggers are still good until tomorrow. Sometimes you need to know when to break the rules (a little).

MCD – another inside day – again great context. Would love to see a short trigger here.

POT at 25-day SMA and daily NLSL – I will use that as my inflection point.

Very speculative setup on WMT. But is it me or is this thing in love with symmetry in the past two months? I’ll be short here with a stop above. VERY small position – it’s more for s*its and giggles – let’s see what happens tomorrow. BTW, if I get away with it I’ll probably be out tomorrow.

Cheers,