California Or Bust!

My bags are packed as I’m heading to Madrid tomorrow morning to hitch a flight back to Los Angeles later that day. After fourteen hopefully uneventful hours of I will once again descend on my old stomping grounds. I’ve only been gone six months but this city changes so quickly that I’m sure I’ll come across something completely new. Word has it they’re going to repaint the Hollywood sign – I wish they’d fix those damn streets instead. Anyway, I checked the weather report this morning and apparently I am insanely lucky as my arrival marks the end of a two month long hot spell (with some nasty humidity thrown in for good measure). See, I can’t leave for long without the place going to the dogs! Get your act together, Califonia!

In case you wonder, there won’t be a post tomorrow (Wednesday) but I’ll back in action the day after. So don’t dispair – besides I’ve got plenty of toys to bridge you guys over.

I sent this chart to my subs about 30 minutes ago around noon EDT. We were touching support and I thought we either hold this or we’ll slide by quite a bit. As I’m typing this we have recovered a little bit but this support line is steep and rising, thus the bulls are not out of the woods just yet.

Here’s the bigger picture – at this point we are slightly below that 100-hour SMA and that needs to be recaptured pronto. Thus the session finale ought to be interesting tonight. Unfortunately I won’t be up to follow it as I’m turning in early.

EUR/AUD – great entry yesterday (and the day before) and we are on the way. If we clear that upper 25-day BB we may just go all the way to target.

EUR/CAD – same idea – we were following that 25-day SMA and it indeed managed to push prices higher. Nothing to do until target as there’s nothing but air above. Stop out is now below that NLSL.

USD/CHF – great entry yesterday at the 25-day SMA – target area unfortunately is nearby.

Dollar – my old Sorgenkind and frankly I’m glad I won’t have to put up with this increasingly depressing exchange rate for at least two weeks. Anyway, my doubts regarding a breach of the 25-day yesterday apparently were justified and we are short with an yet unknown target. I don’t do this very often to be honest – but as of right now I need another day or two until I can place my target.

So much support on gold – wow – it’s screaming bullish and I’m glad we are along for the ride. I will use that 100-hour SMA to slowly step my stop higher. Call that the poor man’s trailing stop – LOL 🙂

By the way – we are actually getting another entry today and if you are long this may also affect where you place your stop. See below for more details.

Copper – similar idea – it’s on fire! We had plenty of opportunity to get long and with some luck we’ll get a nice short squeeze. Again, I’m using that 100-hour to gradually advance my stop.

Coffee is almost ready to be harnessed – actually I’m scaling out a bit at this point.

On to the setups – as I promised there’s enough to keep you busy tomorrow:
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Here’s gold again – it’s serving us an inside day + NR4 combo. If you are already long then a breach higher allows you to add more contracts – a breach below should stop you out. If you don’t hold gold right now then here’s your second chance to get positioned.

USD/CAD – also painting an ID + NR4 combo. You know what to do (if not check the cheat sheet).

Cable – right at the 10-hour and I think this is a great place to get positioned either way. If it breaches then be long – otherwise be short. This one may swing either way, so don’t have an opinion.

EUR/USD – running into resistance and we are shot out on the hourly. I think we’ll see a bit of a retrace here and we may be able to grab a few easy ticks. However, I am not sure that resistance will hold – let’s give it a few days. Of course if it manages to breach higher tomorrow then grab this sucker!

EUR/JPY – right at the NLBL – similar idea as on the EUR/USD actually.

Along with our existing setups this should keep you guys busy tomorrow. By the way, I would love to see a bit more participation on the comment front as it has been quiet lately. So please don’t be shy and post some charts!

Keep it frosty – I see you all on the other side.

Cheers,