Did You Get Out Of Cocoa?
A lot of people are very confused right now and who could blame them? All the while the tape has been dropping in the past few days we received a moderate UP trend day yesterday morning and low UP trend day alert today. A bit of a head scratcher and things seem a bit out of whack. At the same time the Zero shows sign of a systematic long squeeze – the reason I’m suggesting that is the velocity of the current stair step pattern to the downside. It simply feels unnatural – after extremely bullish sentiment you usually get a reset or wipeout of some kind. Downside corrections move at least twice as fast as advances due to raging emotions involved. You don’t just correct down like this and then continue on your merry way. Well – it has happened in the past at several occasions but it’s not tape I particularly enjoy or want to be involved in. I do have some thoughts on what may be next – more on that below.
But before we get to that I must ask: Did you get your butt out of cocoa yesterday when I suggested to take profits? Well, if you did not then you’re really feeling it today and if you did then you are smiling all the way to the bank.
How do I do it? Evil black magic of course! BTW, I’m running out of young willing virgins over here in L.A. – any volunteers?
Now we even breached through a daily NLSL but I don’t like that setup and won’t be taking it. Rather I would be long on a retest and recapture of that NLSL and in particular if we push above that 100-day SMA.
Instead of wasting my time with equity charts I instead follow ole’ bucky, currencies in general, copper of course, and the AUD/JPY. And if you are short the Dollar then I suggest you cash out and spend some of your ill gotten gains before your wife learns about it. The really really interesting perspective however is the long term – please step into my dusty lair:
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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