Equities are doing a great job at keeping everyone guessing which way they’ll swing. I am seeing bearish signs on the horizon but all that has been meaningless for years now. Like Charlie Brown you should expect Lucy to pull that football at the last moment unless proven otherwise. One day that will happen and on that day we may get early confirmation of a possible trend change. Until then worrying about SPX 1400 is nothing but mental masturbation – it’s just a number.
Fortunately we actually were busy banking coin. Here’s the EUR/USD which fell through our NLSL two days ago and was kind enough to proceed to target right away. Now it’s time to lighten up, however it is permissible to keep a few lottery tickets for a possible drop into 1.28. If it happens it will happen quickly IMNSHO – so give it maybe a day, two max – otherwise be gone.
Here’s our AUD/JPY which gave us a short entry yesterday. I suggest you stay in that trade until that 85.25 100-hour SMA is being taken out. Dont’ overthink this trade – either she drops below the waves here or she continues to float. Set your stop and be done with it.
A few new setups for the subs below – please step into my lair:[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.
NZD/USD – very subtle setup but I like it. IF that NLSL fails (i.e. if we close above 0.8162) then a long position here would be warranted. Especially since that 25-day SMA is right above, which means a breach would most likely lead to acceleration. If we turn around then I would not flip this trade as there is too much support looming below. That is of course the good news – the odds of being slammed lower here by a handle or more is pretty limited.
AUD/USD – not my favorite setup as it’s a bit early in the game. You can be long here as long as we stay above that NLSL. But flipping that trade if we breach below may actually work the same. I didn’t make that sufficiently clear on my chart. That 100-hour SMA is probably where the rubber hits the road – or not. You can also use it as a stop for your short trades if you decide to go that way.
Nice double breach on the daily cable chart. I am short here with a stop slightly above that NLSL. Done – simple setup. Target – well, we can hope for 1.589 😉[/amprotect]