Facing The Abyss – Again
After some early morning ECB whipsaw naughtiness equities are back to whence they came. For the third time now, mind you, and guess what – the gaping volume abyss facing the spoos is still alive and kicking.
That’s right – no matter how often you step at the edge and peek over – there’s no volume above 1560 and technically speaking that’s dangerous territory for us. Hey, maybe third time is a charm and besides – all that POMO cash may once again push the tape higher on marginal participation.
Whether you stay long here depends completely on your trading style. If you’re a trend trader and have been long here since who knows who then I don’t see any reason to cut your positions. However if you’re thinking of jumping in here and now, well I’ve seen easier ways to bank coin. Quite frankly I’m taking it day by day right now – mostly playing the short term on the futures.
NQ was a great example this morning. Despite the ECB rate cut announcement it didn’t budge and slowly drifted above my long trigger near the 25-hour SMA. If you managed to grab a few longs there then I suggest you start scaling out now – it’s been a very nice run. The spoos were unfortunately untradeable due to all the whipsaw. You got to pick your victims and I usually stick with the calm and collected ones.
After an early morning fake out run EUR/USD traders apparently suddenly remembered that more QE by the ECB may not be such a great thing for the Euro after all as it suddenly fell off the plate. Of course I’m being cynical – most of you know that I never ever trade the news and stay away from chasing emotional candles. What’s interesting right now however is that the daily NLSL, the 25-day SMA, and that weekly NLBL appear to provide some level of support. So I am long here with a stop below 1.3 (my magic level). Below that we’re talking bear territory.
If you’re a commodities futures trader then this is your lucky day – plenty of great setups lurking below:
It's not too late - learn how to consistently trade without worrying about the news, the clickbait, the daily drama and misinformation. If you are interested in becoming a subscriber then don't waste time and sign up here. The Zero indicator service also offers access to all Gold posts, so you actually get double the bang for your buck.