Draghi Racing

And here we are – back from whence we came. Just last Friday the market went Draghi racing after some calculated jaw boning by our esteemed ECB big mouth in chief which of course sent the crowed Euro trash shorts running for cover, just as planned. There was only one teeny weeny problem which quickly became clear to me after perusing the German forums over the weekend: The Krauts were less than pleased about leveraging up the ESM into oblivion and someone with notions of being re-elected next year must have told Draghi to go and pound some sand.

I’m also not sure what he was thinking earlier today when he belched up that comment about focusing on the shorter part of the yield curve (which really is not the problem) but what I do know is that I want some of that good stuff he is smoking lately. Well, whoever was on the inside of this one sure enjoyed a few nice summer days at the races.

What’s important to us steel rats on the outside is that we are about to reverse an old NLBL (it is officially expired) and may just drop back below that 100-day SMA. Yeah, maybe it’s a fake out – thus we are long as we stay above it and short as soon as we drop below the ole’ Maginot line.

And in case you still wonder why I keep serving up P&F charts over the weekends – well, here’s your answer: Because they work! Our bullish price objective of 1390 was touched, just as projected weeks ago. Of course, if you rather spend a few hours reading the news and the rest of your time debating it – suit yourself. I’m for one am way too lazy for all that jazz.

Gold – take some of that easy money off the table. I plan to keep a few lottery tickets for a touch of 1578ish. Let’s see how fast we get there – if we get there, that is.

Cable – sweet entry the other day – which is rewarding as some of our other FX trades got whipsawed out overnight. Again, time to take some of it off the table and keep a few positions in the running for a push into our expected target range.

Copper – another NLSL entry that keeps on giving. Nothing to see here – I’m keeping this one in the running.

Sugar – thank you sir, may I have another? As the maniacal trading bot that I am I plan to keep going long at the 100-day Maginot Line until we breach through it. One day – but apparently not yet.

Corn is painting an inside day – so we may have a nice entry there tomorrow. But I’m also seeing some interesting movement on the hourly panel. If we breach that NLBL and the 100-hour SMA then I think it warrants a long entry in the next few hours. Or you can play it short if we fail here. If that’s too short term for you then wait for the daily ID entry.

Wheat – touching its 25-day SMA – which has not happened for months! I think a long here is possible BUT I would like to get a better entry. Meaning a touch of the SMA, an inside day, a NLBL/NLSL breach – give something technical as it’s a bit risky right now. I do like how wheat moves though – one of more house trained commodities contracts.

And there you have it – another summer freebie. Don’t get used to it – but use it! 😉

Cheers,