Crude Awakening – Part Deux

Very interesting tape in equities today. As Scott already pointed out – the bears should have taken the express elevator down yesterday or today and the fact that we are holding here is giving the bulls an opportunity to catch their breath. We may see some more downside but I think we now do have a decent chance to hold SPX 1200. Of course – if it breaches then you know what to do – if not then I refer you to yesterday’s update. Anyway, let’s talk crude:

While ZeroEdge was reporting crude’s advance above the 100 mark last Wednesday (suckers love round numbers) I instead consulted my charts and proposed a possible contrarian trade to my intrepid subs. Well, the rest is history, as they say – another fine commodity reversal trade logged for this year. I sometimes almost feel sorry for those ZeroEdge addicts – how it must suck to be so smart and well informed but to constantly get your ass kicked in trading. Hey, I said almost!

Hey, let me be smug every once in a while. To quote Muhammad Ali – it’s not bragging if you can back it up. Anyway, you know my favorite motto: You’re only as good as your last trade. So what’s next Herr Mole? The hourly has us ready for a little bounce here and the daily is now tinkering with a NLSL at 97.51. So expect some noise – if we breach the daily then get ready for some real fun:
[amprotect=nonmember] More charts and cynical commentary below for anyone donning a secret decoder ring. If you are interested in becoming a Gold member then don’t waste time and sign up here. And if you are a Zero or Geronimo subscriber it includes access to all Gold posts, so you actually get double the bang for your buck.
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The weekly was useful to us but the monthly is actually a lot more interesting. You see that monthly NLSL that was breached in the summer and which we are now retesting? This is the real money trade – if we stay above 96.22 this and perhaps even close above it then I expect to see crude at 110 or 120 early 2012. If we fail and close below this month then we may be heading back down to 87 where incidentally both weekly SMAs converge.

And there you have it – fade the news, the scary headlines, the drama, the rumors, and all the mental masturbation and what you get at minimum is clarity of thought and perhaps even more coin in your account.

By the way – if you were awake last night and took that AUD/JPY setup – congrats to you as you woke up with plenty of green in your FX account:

That was our setup last night as shown on the ZeroFX. The rest – as they say – is history 😉

I think I’ve done enough damage for this week – enjoy your weekend! I for sure will and plan on spreading around some of my ill-gotten gains.

Cheers,