Awaiting The Market Oracle

Welcome to our morning briefing. Here we are reviewing short term setups ahead of the NYSE opening bell. If you are a scalper or swing trader then these setups may be of interest to you. As usual keep in mind that these are short term setups although they could be used as early entries for more longer term positions.

Once again we find ourselves in sideways mode ahead of Ben Bernanke’s speech before before the House Financial Services Committee at 10 a.m. ET. You all know how I feel about the fact that we have given one institution (and in particular one man) this much power over our financial markets. It seems that nothing else matters anymore – earnings and the economy be damned – the only thing that counts is whether or not we’re going to keep running the presses. But everyone seems to accept it and perhaps even embrace it in the face of a four year bull market.

Well, I may not like it but it is something completely out of my (and your) control, and as such I mostly ignore the freak show, unless of course when I expect short term volatility to possibly throw a monkey wrench into my setups. So let’s proceed cautiously today and if you trade then do so with small position sizes and wide stops.

The setup on the E-Mini right now is actually rather interesting as it’s touching both its ST SMAs as well as a stack of Net-Line Buy Levels. So one must wonder – is this a last kiss goodbye or is it going to be business as usual (i.e. touch and go higher)?

Gold has lost a bit of mojo and is now back at its 100-h SMA which is what has led it higher. I would be short below it and long above the 1290 mark. I’m seeing a massive double BB compression here so whatever comes next may just have legs.

Double BB compression also on the EUR/USD – great inflection point here at the 25-hour SMA with Net-Lines on opposing sides.

A few more charts below for my intrepid subs:

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Cheers,