Check Yourself Before You Wreck Yourself

We are seeing signs of life on the equities front this morning, however it seems bot driven and I don’t think a squeeze here is necessarily procedural. The main problem we are facing as technical traders is a general lack of short term context.

As you can see we descended below the diagonal on the right panel a day after Yellen’s NIRP surprise and today’s bounce came pretty much out of nowhere. That lower 100-hour BB wasn’t even touched, which is where I may (just may) have grabbed a bit of long exposure.

When markets start running in spasmodic mode it often leads to retail rats attempting to fill the void in context/information with their own opinions. Very bad habit which usually leads to whipsaw and losses. Suffice to say that market makers love this type of tape – taking the other side of emotionally charged entries (i.e. fear, greed) is pure manna from heaven. Veritable fortunes have been amassed on the backs of opinionated stock slingers eager to bet the house on momentary whims or shoo-in tips they came across in some blog or financial newsletter.

Don’t be that guy. Learn how to say no. Actually a clear and resounding NO should be your default response when you come across anything offered to you in life. Because most people are completely and utterly full of crap and couldn’t find their own asses with two hands, a map, and a compass (@Z-gen readers: clumsy round thing with a needle they used before the invention of GPS – predates iPhone). So be skeptical and accept any trading advice at your own peril.

What we endeavor here at Evil Speculator is to educate and guide as much as possible. Setups posted are possibilities but integrating them into your trading activities will be your own responsibility – I’m not your daddy or you’d be a lot more handsome. Which should be your pleasure, I may add. For the process of developing an approach/system designed to extract considerable wealth from the market is as much an adventure as it is a journey. It is not supposed to be easy – it is supposed to be hard. Because if you were like everyone else out there – well, you would be losing then, wouldn’t you? That’s right – your Kindergarten teacher lied to you. Yes, because she was full of crap as well and you were totally in your rights to punch Joey for breaking your favorite Optimus Prime doll. If it’s any consolation – she lost her ass selling options to crack smoking retail rats back in 2008.

Looks like I’m going to have to go old school on you rats again. Perhaps play this one every time you think you have finally beat the market, it just may reset your brain and help you endure the long and arduous journey back to realms of reality.

Setups – NONE today – and it’s not for a lack of trying, mind you. At this point I don’t see anything out there that’s not running in circles or is near an inflection point I am willing to entertain as an entry opportunity. Just because I’m paranoid doesn’t mean they’re not out to get me. The spoos may be a long if we reverse back. And if we bust higher from here – well, just a matter of days until we turn on the dime again, right? By the way, don’t mistake this for cynicism. I simply have very low confidence in any trending potential at this point. Which means my only available options are reversal plays – right? Technical context is non existent on the ST panel thus I am out of options for the time being. Best action for the day: Do nothing and wait for better opportunities.

The future is now – so don’t bring a knife to a raygun fight. If you are interested in becoming a Zero subscriber then don’t waste time and sign up here. A Zero subscription comes with full access to all Gold posts, so you actually get double the bang for your buck.

Cheers,