Inside Pay Day

Today I am writing you from what must be the most ridiculous hotel I must have ever stayed in. And that’s something given that my reference is a cheap U.S. drive-thru motel culture. The price for the best room here was a whopping €20.-, which by the way makes it the most expensive hotel in the tiny little pueblo I wound up finding refuge tonight when it started to pour cats and dogs.

I think you can tell by the eclectic choice of curtains which I would carbon date somewhere around 1971 – probably predating most of the etablissement’s inhabitants tonight. The good news is that Internet kicks real butt here and I was able to run all over my charts remotely. Which was important as today’s session bestowed us with much needed information plus ample coin – assuming of course you took that inside day setup yesterday.

That’s right – 1374.71 was were the rubber met the road – thus far more than 11 handles in the plus. Given the vehemence of this candle I would recommend taking partial profits now and perhaps keeping a few lottery tickets at hand.

Also very positive is that we held at the second volume hole and are no in the process of testing the second. If we can close above 1380 today then I think it would establish a nice base for pushing this thing higher. Not without a little shake out of some Johnny Come Latelys – goes without saying.

But I have plenty more where that came from – please step into my ridiculously decorated mini lair:

Let’s start very short term and work our way up – we have plenty of goodies today (tonight on my end). The hourly seems to be good to go until about 1389 – which is good for today’s session. Of course the close will be our final gauge. But nothing obstructing a short squeeze in the next hour or so.

The daily is well on its way and I also do not see anything in the way until 1380.

The weekly is actually one of the most interesting charts today – as you can see we recovered one NLSL and are working on the second one now. That are weekly NLSLs – not daily ones – which makes this that much more significant. A close above would be very bullish IMNHO.

Before we head over to the currencies I would also like to point out an interesting pattern on the NYSE A/D ratio. My apologies for not being able to produce any drawings on the screen grabs I have to do remotely. It’s cumbersome enough and drawing is not an option. But if you use your imagination on the center A/D ratio panel then you may be able to see a pattern here. We seem to keep running up while the A/D ratio spikes start to drop. Then we get a downside correction, which is then followed by a big 4.0+ up day. And then the tape continues higher until it runs out of juice again. Food for thought and I’ll follow this in more detail once I have full access to my home setup again.

On to currencies which are bestowing us with a few nice setups today. The NZD/USD is kissing its upper 25-day BB line right now – I am going to be short until I see a breach here. Total 50/50 trade but very easily defended – I think you all know the drill by now, otherwise please drop a few lines in the comment section so that some pro rats can help you out – I still have to find dinner somewhere tonight 😉

Next in line is the AUD/JPY – our closest correlation to currencies – try to say that one really quick ten times in a row. If you missed it at the 100-day SMA (now you know why I’m using the damn thing all the time) then you have a second chance right now and here. I am not sure it’s going to breach it and it’s permissible to play it short if we see a failure here. Again, easy setup and you can keep your stop just a few pips away.

Wow – what a break out on the AUD/USD – very nice. It literally sliced through its NLBL like a hot knife through butter and is now kissing both its 100-day and 25-day SMA. A setup I have a sacred duty as a market megalomaniac to take on – I am long here until I see a dip back below those two SMAs.

USD/JPY – sitting on the fence here. I have not taken this setup yet as I want to see another candle. Which you may guess is another inside day! That’s right – you ask and evil Mole delivers!

But wait – there is more! Silver just breached both SMAs – you know the drill – be long here and set a stop below the 100-day SMA. And yes, I would flip that trade if I get stopped out.

And finally there’s gold – same setup – you can take both of them or one – same difference.

Well, I probably could dig up more on the futures side but I’m starving and it’s getting late. This should keep you guys busy for a while 😉
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Cheers,