Back With A Vengeance

Welcome back everyone! In case you care – I very much enjoyed my extended weekend at the Spanish coast. It’s such a gorgeous country and there’s so much left to explore, especially now ahead of the tourist season. I’m glad it’s back to work today however as I’m seeing more high quality setups than I could swing a proverbial stick at. Before we get to the goodies let’s however briefly catch up with equities which IMNSHO look a bit conflicted today:

The SPX attempted to break through today’s inside day setup which I hope some of you put on your  watch list last Friday. No dice thus far and although we briefly painted new highs we may just close on the inside today. Which puts us now in a clear trading range for four sessions straight. I’m not sure if this is a sideways correction or if things are rolling over – a bit early to tell right now.

What’s adding to my general sense of discomfort up here is the UVOL/DVOL ratio which is going sideways today with the DVOL clearly outrunning UVOL. Not exactly a comforting chart if you’re long equities right now. However there are still no clear reversal signals on my horizon so I would suggest you tighten your stops a little but there’s (yet) no reason to panic. Besides – plenty of setups are to be had and perhaps that is where we should point our attention.

For starters we have a clear inside day on the YM futures which will hopefully trigger tomorrow. If it closes where it’s painting right now then we’ll also have a doji in place, which is another sign of indecision (thus working in favor of the IP setup).

AAPL three-ways – you can either play the hourly via the 25-hour SMA, the daily via the 100-hour SMA above and the NLSL right below it, OR you can just take the inside day entry on the zoomed in panel. Should be fun either way.

The greenback is painting a very juicy inside day setup – which followed a shooting star, thus giving it possible bearish context. By the way I put the asterisks on that as some would not accept the candle as a bonafide shooting star. Per the purest definition some want the close and open (i.e. the real body) to be below the lower half of the wick.

Crude – touched the 25-day SMA and painted a very nice hammer. Again, some might not recognize it as such as a popular definition requires it to have the real body at least accomodate 20% of the wick. I’m not going to get entangled into details here and simply follow whichever way that inside period breaches tomorrow.

But I’m just getting warmed up – a veritable plethora of setups waiting below. Please join me in my trading lair:

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Bonus chart – today’s reversal signals on the E-Mini courtesy of the Zero indicator. If you’re not a sub – well, you only have yourself to blame 😉

So, did I promise to much? Didn’t think so. Have fun guys, but keep it frosty and don’t get over exposed!

Cheers,