Going Nowhere Fast

I certainly was wrong about today promising to be a boring session. To my credit I was however right about it going sideways as we seem to be heading nowhere fast. This will be a very quick update as I am ready to embrace my well deserved long weekend and already have a ‘Maß’ (i.e. German 1 liter mug) of Hefeweizen waiting for me.

The highlight of the day on the charting side is that we may just get our second leg into a bonafide VIX buy signal. If you are a noob then don’t be confused by the terminology as it’s relative to equities. Per the rules please check the cheat sheet. Well, the fat lady hasn’t sung for the session yet but judging by the current gyrations on the spoos we may just get lucky here. Tuesday would be such a nice opportunity for a confirmation – but let’s not get ahead of ourselves.

Talking about the E-Mini – the 25-day SMA seems to act as solid support thus far, adding further credence to my suggestions that we may be getting a sideways correction here. Admittedly any solid bets are off ahead of Jackson Hole, which invariably will introduce more volatility into this snoozer of a tape.

Meanwhile over at the woodshed ole’ bucky is making valiant efforts at recapturing its Maginot Line but thus far has been failing ignominiously. Today’s stab lower may pave the way for future weakness – pretty tired looking chart this.

Silver – finally arriving at our target after making a quick detour through the drive-in. If you have not done so take profits here and add another notch to your ‘kick ass trades 2012 board’. Like on gold you got two entry opportunities here and if you snoozed them both then you only have yourself to blame. Of course if you weren’t a sub then you can claim ignorance of the law but that won’t help you much with Judge Mole – I hear he swings a heavy hammer.

EUR/USD continue to nibble on that 100-day resistance. If we get a breach here Monday then I think things on the equities side could fall into place nicely.

Cable – as suggested it snapped back up to its NLBL for a retest – which was the very reason I wasn’t interested in a short position here. Mostly looking out for a long breach here. Once she’ll clear the NLBL I think it’s going to be golden.

I know I said no setups ahead of Tuesday but I ran into two futures setups simply too juicy to pass up – please step into my evil lair:
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Sugar – let’s see what we have here: Possible floor formation after a relentless sell off. Break out attempt – failed and any longs taken to the cleaners. Now we have a double inside day + NR4 combo. I just can’t let this one slip – need to grab at a few contracts on an inside day breach probably Monday night. Noobs – read the rules on the cheat sheet!

ZN – the 10-year futures contract. 100-day SMA fail followed by a NLSL failure – interesting! Now at the 100-day SMA and either it’s a last kiss goodbye or a long entry. I have no directional bias here and will follow whichever side of the SMA it decides to pick.

Honorable Mention:

The Mole signals are kicking ass lately – if you are a Zero sub then I certainly hope you are paying attention.

That’s it – wishing y’all a relaxing and fun Labor Day weekend!

Cheers,