Just The Setups Ma’am…

The August trading blues are almost behind us, various futures contracts are rolling into their final month of the year, and I’m seeing a bit of movement in some key markets. Although I advise everyone to keep position sizing small as of now I believe it’s time to dip our toe into a few campaigns and also add a few promising symbols to our watch list. As always let’s kick things off with equities:

In terms of participation yesterday’s session was actually quite reasonable and the tight price channel suggests that we’re in a tug-o-war situation here. If you consider the daily context then we have the makings of an explosive resolution, the timing of which is almost impossible to predict. I’m currently long here with a stop two bagel throws away (I’m German but love bagels – got a problem with that?). I would not recommend getting positioned below the 100-hour SMA however as this IMO marks the beginning of the whipsaw from hell zone which extends all the way to 2164. A drop below that may warrant short positions but I’d have to consult the Zero indicator first. All in good time and when it comes to trading patience is not a virtue but key to survival.

Okay so gold is definitely on my short term watch list. I do not want it here and I don’t want it above the green trend line. But I most definitely want it after a retest of the 1300 mark – I would make due with 1305 if it looks like it has slowed down sufficiently and is ready to paint a floor. Cue to my statement above regarding patience…

More goodies below the fold – please grab your decoder ring and meet me in the lair:

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