Bluffin’

Pretty relaxed day down here at the lair but we continue to print coin one campaign at a time. It’s been pretty rough sailing over the past few weeks and I’m proud to say that our policy of taking on small but strategic risk has paid off.

Most importantly we have been extremely picky in choosing setups which kept us out of a lot of whipsaw tape. Human psychology often leads you to increase participation during noisy tape – may this be due to revenge trading, over compensation, defense of entrenched opinion, who knows – the rabbit hole of human cognitive biases runs deep. However if you’re playing it by the book you should be fine – you may have not caught every single swing but as I said the other day, our mission during this market phase is survival and keeping one’s powder dry for more directional tape. Message received? Great, let’s move on.

I’ve fortunately kept short despite a quick spike higher to 2013 this morning – this conniving bitch of a market stopped me out at 2012. But persistent as I am I jumped back in at 2011 seeing the complete lack of participation on the Zero:

I was prepared for whipsaw and thus far it’s continuing lower. I’m a bit surprised actually as participation has completely flatlined all day. But if you find yourself on the right side of the tape, don’t over think it right? Fortunately the context developing here is extremely positive. Even if we reverse and run higher I’d be happy to flip for long positions as this would actually validate the entry. So I think we’re positioned well and the tape is now working in our favor.

Cable update – I’m taking profits here after a textbook entry two days ago. I could wait for a touch of the upper BB but as I mentioned last week: In this market I’m a bit quicker to take profits – the nimble trader lives another day.

Bonds – this could actually turn into a trend day. Very few people would look for short positions here but this is actually what may happen. For right now I’m long but my short trigger is at 153’20.

Juicy setups waiting below the fold – please join me in the lair:

It's not too late - learn how to consistently trade without worrying about the news, the clickbait, the daily drama and misinformation. If you are interested in becoming a subscriber then don't waste time and sign up here. The Zero indicator service also offers access to all Gold posts, so you actually get double the bang for your buck.

Please login or subscribe here to see the remainder of this post.

Cheers,