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Going Nowhere Fast

by The MoleMarch 27, 2013

Let me get on record by stating that we’ve got way too many holidays these days – over here in Spain I just suffered through a week of Las Fallas and now I have to put up with both Passover and Eastern! Is there no end in sight? How am I supposed to be manhandling hapless victims on the other side of my trades when they keep throwing yet another holiday at us!

Well, I think the Zero Lite pretty much shows it all – complete flat line. If I still would be listening to a ticker I would have to go and check whether or not the damn thing is plugged in.

In case you wonder – no, I don’t go back that far – hehe – but I do appreciate the value an acoustic signal must have offered those old school traders. In some ways the creation of the Zero was an attempt to visualize participation in a similar fashion. And I think it has served us very well over the years.

Here’s a chart I posted this afternoon – that rising wedge could actually be a bearish signal but with Bernanke’s put and the new highs in the middle of it we can’t be sure. Let’s pay attention however once we retrace to either the bottom or the highs – in the interim I would suggest you let things play out as there’s little edge guessing the direction.

Here’s my short term NYUD against the SPX – seems like it’s lagging price by quite a bit.

Similar picture on my short term VIX:VXO ratio (i.e. new vs. old VIX formula – the latter being more ATM strike focused). Usually if you see an extended (meaning more than a few hours) divergence odds support a retracement in the direction of the ratio. It’s a holiday week and I don’t want to attribute too much to this but be careful and if you manage to eek out a few handles make sure you get out quickly.

That’s all for today as I reckon that most of you guys are busy preparing for a long weekend. No worries – I’ll be posting some my early morning briefing tomorrow as those types of setups seem to work best right now.

It’s not too late – learn how to consistently bank coin without news, drama, and all the 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.

Cheers,


About The Author
The Mole
Mole created Evil Speculator amidst the chaos of the financial crisis in early August of 2008. His vision for Evil Speculator is a refuge of reason, hands-on trading knowledge, and inspiration for traders of all ages and stripes. You can follow him and his nefarious schemes at the usual social media waterholes.
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  • Rightside_ot_trade

    Thanks for keeping it going all week
    Still good trading in metals softs ags

  • https://evilspeculator.com molecool

    Yup, was playing some of those.

  • https://evilspeculator.com molecool

    Wheat exploded today! 🙂

  • http://dartht.blogspot.com/ Darth_Gerb

    Berg, hold the fort down, i’m going to lunch.

    http://www.youtube.com/watch?v=_sJ05t16IwE

  • http://ibergamot.blogspot.com/ i Bergamot

    I still don’t know how to read that Zero flat line
    No participation is bearish? Or no pick up on Zero during reactions is bullish? Or both?

    (I know that somebody will reply: “Yes”)

  • http://dartht.blogspot.com/ Darth_Gerb

    watch the videos.
    even a Leech can learn from it.
    no participation means….no trade, no conviction.

    http://www.youtube.com/user/EvilSpeculator

  • Schwerepunkt

    Ah, but does that mean one can fade the underlying price movement? Like the rise off today’s bottom?

  • https://evilspeculator.com molecool

    Yes, watch the videos. But in essence – no participation means a few players can bang the tape any way they like. Typical ahead of major holiday weekends – often reversed overnight. Play small and be nimble.

  • https://evilspeculator.com molecool

    I would not jump to conclusions.

  • http://twitter.com/law6 law

    nice going mole

  • RacerXX

    I thought you moved to the EU so you could enjoy all those holidays.

  • mrmik3

    Its simple man.. if that thing is banging away in either direction or both yet mole is flatlining it means no participation and usually some trickery involved … Depending on your trading I would just stay out untill that Shit is over with

    Yeah what mole said go watch some videos man they are gold!!

  • http://ibergamot.blogspot.com/ i Bergamot

    I just have to buy FB

  • Joe_Jones

    With tomorrow’s POMO, volume abyss and thin air at these levels, a breach of SPX all time high should be a breeze for algos.

  • convictscott

    Mole you mentioned an audio signal. http://tradersaudio.com/ is really really cool, its a live feed of the big S&P contract pit. You listen to it for a few days and feel the action/tension seep into your subconscious. Try the trial for a few days 🙂

  • http://dartht.blogspot.com/ Darth_Gerb
  • newbfxtrader
  • http://dartht.blogspot.com/ Darth_Gerb
  • Joe_Jones
  • http://dartht.blogspot.com/ Darth_Gerb

    beat me by a few minutes, but mine has better audio.
    =P

  • http://dartht.blogspot.com/ Darth_Gerb

    volume was weak.
    needs to get above 4.30

  • badflightrisk

    Long at 3.95
    3.90 level has held twice with good buying interest

  • Joe_Jones

    It stopped at the acceleration line. If I see an upward breach tomorrow of the line, I’ll add some

  • https://evilspeculator.com molecool

    Well, I was referring to a ticket – you know the – tick tick tick tick. When it was racing you could hear the activity – on a slow day like today it was just sputtering along intermittently. Just by listening you could hear how much momentum there was in the tape.

  • https://evilspeculator.com molecool

    No, I just enjoy having functioning health care 😉

  • Th3_Acist

    One of my favorites!

  • http://ibergamot.blogspot.com/ i Bergamot

    Check out RGLD.
    Already going

  • Schwerepunkt

    “Hey Joe, I’ll have a meatball sandwich.” I actually heard the guy say that with his Chicago accent.

  • convictscott

    accelleration line… is that the concept Fearless used to talk about?

  • convictscott

    I was watching it live and chatting to mole that day!

  • convictscott

    I have a good stockbroker friend who was a pit trader in 87, before everything went all computerized He was a hard drinkin, hard partying man, and he told me he would just have a bloody mary to clear the hangover and “feel the pulse of the floor”. He also said that most of the truly great floor traders struggled to make the switch to screen based trading. I think if you were truly trading from a correct state the audio feed would be a good tool.

  • convictscott

    Peter you should consider raising the stop on the JPY long. IMO becomes a short @ 94.00

  • convictscott

    There is a definite pre-holiday upwards bias in stock markets. Rob Hanna interestingly notes that all 5 instances of an open gap on easter thursday resulted in a gap fill. A gap fill trade is probably worth looking at

    http://quantifiableedges.blogspot.com.au/2013/03/an-intraday-look-at-holy-thursday.html

  • convictscott

    And whose stinking footprints are plastered all over the ninjatrader support forum…. Molecool http://www.ninjatrader.com/support/forum/showthread.php?t=39752

  • raised_by_wolves

    @convictscott:disqus @molecool:disqus Do you guys adjust for contract changes? The recent inside day sell on GC was stopped out without adjusting for contract changes but wasn’t stopped out with the adjustment.

  • gsavli

    well, bulls have been trying to do that for days now. and their european cousins are turning into bears. (no POMO in europe).

  • convictscott

    I take the signals off the physical spot price, and trade a contract with enough time until first notice, and only chart off that.

  • Schwerepunkt

    Going to be a busy morning in USD.CAD. Data dump at 0830 with the pair currently down but sitting on the 25-bb and support at the 100-sma sitting below by about 125-pips. If it trends down today to 1.0025, it should find support. But that also means equities are likely to break new highs.

  • https://evilspeculator.com molecool

    Yup, I have been bugging these guys for years – hehe

  • https://evilspeculator.com molecool

    Awesome – let’s hope for a gap then 🙂

  • bullregard

    Anyone remembers Fearless’ article back a while https://evilspeculator.com/?p=26762
    His target was 1560.

  • https://evilspeculator.com molecool

    ¤ø„¸¸„ø¤º°¨¤ø„¸¸„ø¤º°¨ 
    ¨°º¤ø„¸F R E S H „ø¤º°¨ 
    ¸„ø¤º°¨ M E A T“°º¤ø„¸
    ¸„ø¤º°¨¤ø„¸¸„ø¤º°º¤ø„¸

  • https://evilspeculator.com molecool

    I personally do not. Yes, it makes sense in principle and many would disagree with me, but in most contracts the continuous chart works very well for me.

  • raised_by_wolves

    @convictscott:disqus @molecool:disqus Thank you Sirs!