Emotional Monday Morning Briefing

Welcome to our morning briefing. Here we are reviewing short term setups ahead of the NYSE opening bell. If you are a scalper or swing trader then these setups may be of interest to you. As usual keep in mind that these are short term setups although they could be used as early entries for more longer term positions.

The Mole is back and with a vengeance! Before we get to the (rather interesting) tape this morning I would like to extend my sincere thanks to the Scott the Convict who kept this blog humming all week despite a ruptured appendix which forced him to go under the knife mid week. Talking about commitment and being a tough SOB – you’ve got it in spates, my brother from another mother.

Emotional tape this morning and quite frankly I’m blissfully ignorant as to what exactly went on overnight. Obviously I’m aware of the general theme of this particular kabuki dance but as Scott already elaborated upon – unless you’re on the inside there’s no chance you’ll get in front of whichever way this thing will swing. Plus as soon as I see the crowd getting nervous I get in touch with my inner Heisenberg – which means being chill as fuck and don’t let my emotions direct my trading.

I agree with the Convict that a massive short squeeze here would pull the rug under the bridge-and-tunnel ZeroEdge crowd. I wish that would make them shut up for a change but seeing their accounts bleed has its own merits. Anyway, just because we’re playing contrarian doesn’t mean it’s guaranteed to happen. But this is not about being right or wrong – it’s about risk versus payoff. Because if it does happen then it’ll be massively profitable as many retail schlepps will find themselves with their balls on fire and as you know there be no butter in hell.

The ES is completely useless right now. Overnight we plunged to the 25-day SMA but that’s just a line at this point as it has mostly been ignored as of late.

Which brings us to the NQ which looks a lot more solid right now. Also some gapping action overnight but we’re near a horizontal diagonal plus the 25-day SMA looms below. So either we hold at 3195 or we drop toward 3175 and that’s where the real battle will happen as the 25-day has been tested quite thoroughly. If that one gives we’re going to 3150. But until any of that transpires a long position here is a possibility – however I don’t see any good entries on the ST panel at the current time, so let’s remain patient.

However bonds look a lot more fun this morning – let’s take a look:

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Cheers,