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Back In The Thick Of It

Back In The Thick Of It

by The MoleApril 16, 2014

Things are starting to look more positive as we are accumulating bullish context. As you recall the VIX triggered a bonafide buy signal (relative to equities) and thus far things are proceeding in the right direction. That of course doesn’t mean we won’t see an attempt to shake out some of the stragglers.

On our volume profile chart we are back in the thick of it – anything can happen around here and it has in recent past. But if nothing else the bears once again were unable to drag things beyond the point of no return, one which may have heralded a medium term trend change. So no cookies for the teddies and the bulls have another lease at life – at least for now.

The GBP/JPY correlation continues to provide important clues and thus far it seems to be leading higher.

Short term (left panel) we are holding the 25-hour SMA and may just breach that NLBL just below ES 1850. Not much context on the daily chart, so for now let’s stick with the hourly. As long as the 25-h is leading higher we are in squeeze mode. Won’t last forever though and various strategies for a shake out are probably already being hatched. If you are long from Monday then there’s not much for you to do – don’t over think this – hold your position and move your stop up with each 1R increment. It’s important that you let your winners run.

Thanks again to Scott for providing valuable guidance during my days off. It was short and sweet and very much to the point. That’s how I like it. Complicated charts and pages of rationalizations are for traders with too much time on their hands.

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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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  • Gold_Gerb

    Scott didn’t yell at one person. I hope he’s okay.

    IMHO were still in a multi-month rollover. Bulls need to show their stuff, or May will be a soggy one.

  • Gold_Gerb

    any bears left? now would be a good time. but no context.
    besides, I have a staff meeting to attend!


  • Skynard

    Bear flag 5 min

  • ridingwaves

    bears are dead, It looks like the MM’s have figured out how to fix vix….it almost got away from them yesterday..I was setup perfectly in Vix play and had to leave for business ahead, got out of meeting and all of a sudden the push vix down meme was in effect….crazy but the 2 carne asada tacos were great..

  • Gold_Gerb

    I love carne tacos, glad you can see the positive.
    OEX 824, paused for a while, and now powering onward.

  • ridingwaves

    was up nicely but broke out even, so not a big deal but for a couple minutes there yesterday the bears had a chance to move market down hard….the vix push down eliminated it….out here in California, Carne Asada at little mexican joints with handwritten menus or even some lunch trucks is about as authentic you will get….

  • Gold_Gerb
  • molecool

    He’s busy working with me in the background. Good stuff coming – if you behave!

  • DollarChaser

    Does this good stuff rhyme with Heisenberg?

  • molecool


    ¨°º¤ S H A K E N ¤º°¨

    ¸„ø¤º° B A K E !“°º¤ø„¸


  • molecool

    Actually it rhymes with LazyIcon.