In physics, escape velocity is the speed at which the kinetic energy plus the gravitational potential energy of an object is zero. It is the speed needed to ‘break free’ from the gravitational attraction of a massive body, without further propulsion. Now if you apply this concept to the current situation in equities then it’s easy to see the gravity well that’s been holding our butts inside this year’s sideways churn zone from hell:
I’ve pointing at this volume profile chart for weeks now and for a good reason. Every time we get near the edges we get pulled back in. Manna from heaven for skilled swing traders but a bit exhausting for anyone waiting for this thing to pick a direction. I frankly couldn’t care less as I’m drowning in setups today but as you guys are hell bent on playing equities I’ll be Huckleberry.
However I have to concede that we are looking good on the equities front. I mean come on – a small inside day candle near upside resistance, that’s the stuff we’ve been waiting for. I did expect a little shake out, yes – but quite frankly I didn’t expect it to be this little.
Same setup on the YM – almost identical. FWIW – I won’t be taking either of them as I have two with better context. Unfortunately for you leeches those I’ll reserve for my loyal subs 😛
I won’t be an Unmensch however, so here’s gold which I think is painting awesome context and now we’ve got an inside candle to get us positioned. Either direction on that IP candle is looking good IMNSHO.
USD/CAD – you’ve got two options on this sucker. Either long courtesy of that shooting star (which we would like to fail if it’s not too much to ask) or long above that NLSL. Maybe we’ll have to play both to get positioned. And yes, although the downside cannot be ruled out I think that the upside would be the easier play. As you know I like my victims in prime condition and ready for the plucking.
Alright, quite a bit more where this came from – please step into my lovely spring lair:
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So, did I promise too much? Didn’t think so! And on top of all that I managed to finish testing the new CrazyIvan release which will be deployed tonight. Very excited about that and I hope everything is going to run smooth.