Keep Emotions Out Of The Game

Once again we’re seeing quite a bit of bearishness in the comment section and the Mole is more than happy to set you straight by urinating on your grizzly parade [graphic not included]. Look folks – although we have seen some warning signs here and there (see updated daily Zero) we have insufficient technical evidence to expect any substantial moves to the downside. If nothing else the nasty tape of the past three weeks has shown us that every single push the downside is instantly bought back. Yes, there’s a battle being fought but a winner has not yet crystallized. Let’s review:

Here’s the S&P cash – clearly there is support via the 25-day SMA with the 100-day trailing it about 70 handles below. Wake me up once we breach through the 25-day and then again threaten the 100-day. Until that happens let’s not jump to conclusions, shall we?

On the upside we now face new resistance in the form of a NLBL at 1848. A push through will be needed to finally abandon this dreaded trading range. The sooner that happens the better but in the interim market makers are doing their best to punish both sides without prejudice. As I told you two weeks ago – the only way to win here is not to play.

The NQ however looking quite a bit more positive. We just concluded a daily NLBL and it has held up just perfectly. On the weekly it’s attempting a NLBL breach at 3594.75. The week is still young and we have four more weeks to go – but keep an eye on this one and structure your trades with it in mind.

Not much happening on the setup side today – in tape like this I’m extra picky as you know. The only exception: EUR/CAD – very sweet RTV-S and NLBL-L combo – triggers are on the chart. This one will be good after the end of today’s session and I recommend you put your stop a pip or two away from the opposite trigger.

Keep it together folks – obviously this has been a very difficult month (and that would put it kindly) but as the old saying goes. This too shall pass! It’s a rookie mistake to attempt to fill the current information vacuum with emotions, imagination gone rogue, or wishful thinking based on your own book. Believe me – better men (and women) than you have tried and in the vast majority of cases – failed ignominiously. Just let it go – do not try to predict the outcome – simply rely on your charts and observe the changing dynamics as each day unfolds.

We are neither bears nor bulls – we are lowly steel rats who live and thrive within the cracks of the big machine. As such we keep it simple and strictly focus on what works – we ignore the hype, the rumors, and most importantly the news. In the end that strategy has served us very well over the years.

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,