Keeping A Respectful Distance

Equities continue to fade retail sentiment which is evidenced by participation patterns that appears to be dominated by institutional buying. Yesterday’s session once again managed to take off and churn higher without touching VWAP even once after the first hour. Which by the way is exactly what happened on Friday as well. I have chosen to not over think the situation and simply trail the tape higher – at a respectful distance that is.

My trail has been raised to about 0.5R which isn’t much to write home about but better than a kick in the shin.

Speaking of which, my ZB campaign was taken to the woodshed mere hours after entry. So I am now standing by in anticipation of scenario B:

Slightly annoying to see continuation of the current pullback but the silver lining here is that we may get a drop back into 145 which I consider a gorgeous LKGB entry opportunity, assuming a spike low can be put in place.

Still in the game in gold but the campaign is hanging by a thread. IF that lower 100-hour Bollinger holds up then this one has good odds of continuing higher and embark on the third leg of this run. Should 1280 give way then I think we’re in for a much deeper correction, possibly extending to 1260.

No new entries today as everything seems to be running in circles. And if you allow me a momentary bout of subjectivity: Something just doesn’t ‘feel’ right just yet – as if participants are running from one sector the next based on the daily whims of the news cycle.

Which is completely understandable given where we are on the implied volatility front:

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