Curb Your Enthusiasm

Equity futures have survived the night and are still looking solid. Not to sound cynical but isn’t it time for a shake out to the downside now? Just kidding! Frankly I have nothing to add right now – as you know I’m holding longs since 2112 but my expectation of finally seeing some directional tape remains low.

This looks and smells like a break out but after two months of sideways hell one wonders how many shorts remain to be squeezed. Scott pointed out that yesterday’s push higher was accompanied by waning momentum, however that hasn’t stopped prop desks from banging the tape higher in the past. So I choose to not over think this and simply move on. Quite honestly I’m sick of looking at this formation and something tells me the less I do and the less I care the better I’ll manage, no matter which way it’ll resolve.

There’s a good Spanish expression I’ve come fond of: Mucho ruido y pocas nueces. Roughly translates into ‘much ado about nothing’. Pretty much sums up equities since late last year. And sadly most people I’ve met in my life 😉

AUD/CAD – I’m grabbing a long position here with a stop below 0.962. That 100-hour SMA has been rested recently and is the next best support line before things start turning much lower here. Admittedly not a whole lot of context here so I’m only playing 1/2R.

Copper – very unusual tape for copper here in the past two weeks. I’m daring a long position near the lower 100-hour BB. Would be tempted to go short on stop out. Still this looks like a chart that’s trying to pump higher but like crude it seems to completely lack any directional mojo.

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Cheers,