Euro Dramarama

Don’t know about you but I just about had it. The constant drama is exhausting and it seems that not unlike adrenalin junkies many of us, including the MSM, have utterly become addicted to it all. At minimum it has created a thriving global industry which is feeding off of the hysteria and taking advantage whenever and wherever possible. It seems that since the turn of the new century our collective lives have increasingly been plastered with a litany of drama, degradation, and depression. Across the board, politically, economically, financially, socially, as well as environmentally the West has somehow managed to stumble from one major crisis right into the next, whilst making one bad decision after the other. All of which assuring that nothing gets fixed and that various incumbents are be spared from making politically inconvenient decisions. So we slog on, doing the same things over and over again, expecting different results.

And the Euro is  just one example. When watching the ongoing Forex drama over the past few months I’m reminded of a brilliant quote in the second season of Fargo made by officer Lou Solverson played by Patrick Wilson:

“There’s a look a boy gets when he’s been shot or a… or a land mine takes off his legs, and he’s laying there in the mud, trying to get up, ‘cause he doesn’t feel it yet. His brain hasn’t caught up with the reality, which is… he’s already dead.”

Fortunately I have been spared the horrors of watching my comrades die in battle but that quote comes to mind when looking at the chart above. The Euro project is dead but somehow none of the major player is able to realize it. Meanwhile the hits just keep coming. Almost every three months or so on average we get treated to some massive move which then quickly reverses after having touched pretty much every stop placed in the immediate vicinity. And I don’t expect things to get any better anytime soon, especially with a slew of elections coming up over the next two years.

Not sure if I can offer any ingenious solutions to this mess, except perhaps to crowning me king of Europe and letting me clean up this trans-European mess with an iron broom and a high velocity steam cleaning tool reserved specifically for Brussels, Paris, and Berlin. In the interim however keeping your exposure very limited ahead of critical economic or political events remains key. So let’s review some of the symbols which survived the Italian referendum:

Who would have guessed that cable would be the one quietly steering higher? Last week’s entry on the 6B futures has already been retested and now it’s time to move our stops to break/even. My preliminary price objective here is 1.28 and hopefully a few ticks higher (or pips if you’re playing GBP/USD).

Soybeans seems to be attempting a break out and I’m all for it as we’re also long since last Friday. We’re barely at 1R but I think it’s permissible to move our stops to break/even now. This one does not have a PO as it’s a trend trading candidate, which means that it may be at the cusp of breaching its upper 100-day BB and making a run for it.

Finally silver which I posted about not twice but three times to my subs about last week. This one isn’t out of the woodworks yet but I very much like the accumulation of volatility and the coiling pattern. I think this one has decent chances of breaching those daily Net-Lines and pushing higher toward 17 and beyond.