End Of The Line
End Of The Line
And there we are – we have officially come to the end of the line, so to speak. No, I’m not talking Mayans or any doom & gloom. A glance at our volume profile chart shows us nothing but chirping crickets above today’s highs:
Which means the powers at work will have to be creative to push this thing higher. Think some weekend or overnight headline surprise (or rumor) spiking the punch a bit higher. May be followed by an instant reversal (wouldn’t be the first time) but by then the bar is set higher and can be conquered in ensuing attempts. Sometimes things have to be done in a roundabout way to overcome the physics of gravity.
We are also dealing with two stacked buy Net-Lines on the spoos right now – a push higher usually triggers a buy but given that volume profile I’m not really excited about this setup.
But the real kicker of the day is my next chart – sorry subs only – please step into my badly decorated 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.[/amprotect] [amprotect=1,13,9,12,5]
That’s right – unless disaster strikes in the next hour or so we’ve got ourselves a bonafide VIX buy signal today. Now before you get all hot and bothered about taking long trades – we have an itsy bitsy problem here. Which is that a drop of less than two VIX handles would put us into step 1 of a VIX sell signal – that’s how compressed our volatility range has become. Plus the Bollinger is now pushing sideways, suggesting we are losing momentum and much needed oxygen near 30,000 feet.
Completely disagreeing with all that is the spoos’ half sibling, the AUD/JPY. That is one long trending chart may I say and I don’t see any technical reason for the viagra to wear off anytime soon as the Fed is busy passing out blue pills for free.
Somewhat agreeing with my upside skepticism is the USD/JPY which has officially gone exponential. Not sure when gravity will reign it in but if you somehow missed my call to take profits yesterday, good for you but don’t stay out your welcome!
Our EUR/JPY trade is starting to push in the right direction. There may be a retest but unless it hits your stop don’t let it throw you off the bus.
[/amprotect]Cheers,
