F5.6 And Be There!

After having suffered through several sideways summer snoozer weeks we are finally off to the races. Booyaka! Almost all of our setups posted earlier this week are proceeding nicely. Which is our well deserved reward for remaining focused and not getting distracted by either the news or the noise. The tape has been moving fast and now it’s time to start taking profits on some of our setups. We also have new exciting victims in the bullpen so let’s jump right in:

Real quick before we get to our setups – here’s a chart I emailed to my subs before the NYSE open. Due to two engulfing candles we were seeing a very interesting setup on the S&P E-Mini. At the time we were inside two opposing Net-Lines placed less than eight handles apart.

Well, I hope you took the short entry as we are well on our way. Given the NLSL breach and the exhaustion candle two days earlier (touching our 100-day Bollinger band) I think it is worth holding a few lottery tickets for a stab lower. And yes, there may be a retest of that NLSL – it’s admissible to take partial profits after a long down candle like this – especially early in a correction.

Gold – after testing our patience for two weeks we finally got our entry on Tuesday morning. Hard to believe we proceeded to our first target range two sessions later. I would take partial profits here.

More longer term I however believe that gold could push quite a bit higher. We got a prime entry and I think it’s worth keeping some of those positions in the running for an advance higher. We may see a little counter reaction here however, so be prepared for that. The targets shown above are medium to long term – please keep that in mind.

Silver – still in the running but I would take a few positions off the table as it will probably respond to a temporary weakness in gold. My first target range is highlighted above near 31.74.

Here is silver’s medium to long term panels. And again I think that more upside is a possibility as well.

Treasuries – the 30-year is pushing our buttons a little. I got stopped out back at the 100-day SMA but did not take a long positions due to the NLBL right above. This would be my next attempt for a short position – or of course a long if it manages a breach.

EUR/USD – that was a fine clean inside day entry and we are near target. I will start scaling out and then wait for instructions at the Maginot Line.

USD/CHF – another fine ID entry and we are approaching the 100-day SMA. Which means it’s time to start banking coin.

Alright, time to dive into a few more setups – a stainless steel rat never rests. Being a trader is a bit like being a photographer: F5.6 and be there! Meaning – be patient, don’t over think it, and be there when opportunities present themselves.
[amprotect=nonmember] More charts and non-biased 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.
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AUD/JPY – this one may be a bit late in the game but I like this SMA breach. If you are in it hold it until support. If not (more likely) then I would wait for support or take it on a 25-day SMA retest (a.k.a. last kiss goodbye).

CAD/JPY – sell signal and now approaching its Maginot Line plus the 25-day SMA. As you know I like entangled SMAs as that raises the odds of support/resistance. I would be long there with a stop below the 25-day SMA. If both SMAs are breached I would definitely flip it for a short positions as there’s nothing but air below.

More on the currency theme: EUR/JPY is honoring us with a double inside day + NR4 (fourth narrowest range day). You know what to do – if not check the cheat sheet to get up to speed on how to trade inside days.

I’m patiently waiting for a long breach on Cotton. Yes, a reversal play on a touch is possible but I think a short squeeze will pay the big bucks. Keep an eye on this puppy – be assured that I will.

Similar setup but in the making right now over in copper. This thing is coiled up to the max and an SMA breach promises to accelerate us higher. Of course it’s permissible to be short until that happens.

ZN – a bit more advanced than ZB, so I thought I’d post it as a setup. You know the rules – a breach is a long and a failure keeps the down trend intact.

Our discipline and patience has been paying off in spates this week. So let’s not get complacent and stick with our game. Now go out there and have fun but keep it frosty.

Public Service Announcement: From the who is honoring me now department – I am proud to announce that Evil Speculator made it to number four of the top 100 option trading sites. Irks me a little that we didn’t make into the trop three but I assure you that this oversight will be remedied by next year. You all should be very proud as this place wouldn’t be what it is without every single of you guys. The comment section has been on fire all year, even through the dire summer months, and rarely do I have to resort to moderation. Everyone is focused and to the point but we manage to keep it fun. I will work hard to make this place even better. And I hope all my steel rats will be along for the ride and of course bank mighty coin in the process. Thanks guys!

Cheers,