Devastatingly Beautiful

Someone is going to get stomped here and it’s going to be glorious. Once again equity futures are looking tired and ready to slip off the plate (or feigning to be) for no apparent reason. Which would be the perfect spot to do it if you abandon traditional technical analysis for a moment and allow yourself to approach trading from a more heinous perspective. 

Of course until I actually see real potential of failure I must be long here as this is as good as it gets for stainless steelrats like us. Whipsaw potential is high of course, and should be expected near important inflection points, but it may be well worth the price. My stop is near 2034 and I already have entered an order to flip for a short position should it be touched. In that case my stop would be above 2046, permitting for another fake out higher. UPDATE – it keeps dropping so long entries are getting even more juicy 

I’m already long gold but if you missed it then you may get another opportunity on a retest of the diagonal shown on the hourly panel. This one is coiling up beautifully and the more time passes until this situation resolves the more stunning I expect the resolution to be. If I wasn’t already in this I’d place a resting long order near 1271.4 with a stop below the lower 100-hour BB.

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Don’t forget that it’s FOMC Wednesday and although that doesn’t preclude us from trading I recommend you keep your position sizes small. Also, if your open positions do not move in your favor ahead of the announcement at 2:00pm Eastern then it may make sense to close them beforehand, unless you enjoy grabbing the tiger by the tail.