Failure At First Hurdle
The bulls are far from having their mojo back and the strain imposed by the very first volume hole between 2670 and 2680 (see yesterday’s post) appears to have been more than it could bear. So flat on their faces they ended up again after a lackluster session that made me wonder if I may have missed out on a trading holiday.
Now let me be frank, the more often the bulls continue to fail at important inflection points the more it raises the question as to whether we are looking at massive distribution here.
Of course the biblical short squeeze in anything crossed with the Dollar does not help matters. Hell, I can’t believe I just said that!
Frankly I’m starting to be a bit embarrassed about posting this every day, but this is quickly turning into one of the best long squeezes I ever had the pleasure to riding higher – in style I may add.
I stopped counting profits somewhere around 10R while I simply use the 100-hour SMA for advancing my trailing stop higher.
Meanwhile the EUR/USD is being manhandled West Coast prison style. Just looking at that hourly panel gives you an appreciation of the vehemence of the accumulated selling pressure that is finally being released.
A drop through the 1.19 mark pretty much opens the flood gates and could lead us to 1.16. Oh yes, pretty please!!! One of our intrepid readers ‘Dyellowflash’ apparently was shorting this one and is now scaling out after banking 11 R – nicely done good sir or madam!!
AUD/USD is a stop out. I used it as a Dollar hedge so I can’t really complain as the DX is making up for it in spades.
USD/CAD not surprisingly is producing quite a bit of green – a lot more than anticipated as this originated as a quick scalper. Given the current velocity I decided to keep trailing at about 4R after an MFE of 5R.
USD/JPY – meh… smells like a stop out to me. These types of 100-day SMA formations are supposed to take off quickly and I’m not feeling it here. But then again – I’m happy to be positively surprised 😉
I’m sure you already forgot about that BTC campaign. It looked like it was about to take off but then returned from whence it came. Let’s put that vertical to rest for the foreseeable future. No real buying pressure and it looks like we are still recovering from the drop into the trough of disillusionment.
I’m glad I cut copper at break/even yesterday as it descended right into ISL overnight. Gold is starting to look similar but I only grant myself a discretionary exit once per month, so I’ll have to sit this one out till the end.
The ZB (unlike the ZT) has held on nicely and I’m now moving my stop to break/even. However I don’t think we are going to see any movement here until the Dollar decided to take a breather.
I’m not seeing much else of interest right now. Time to just watch and work on our future evil schemes.