Kicking Butt And Now Taking Numbers

While most everyone’s heads must be spinning today we stainless steel rats are again kicking butt and are taking numbers. Frankly, it’s been a sensational quarter for us already, which of course means we must not get cocky and keep our bloated egos under control. For we have met the enemy and it is us!

I have a whole boatload of charts again today – the least interesting of which is the equities side. But since that’s what most everyone seems to be chatting about let’s cover the obligatory stuff first. As I’m writing this the spoos are below their daily Net-Line Sell Level (NLSL). What lies below is a bit of support in the form of my lower 25-day BB line, closely followed by the 100-day SMA. Suffice to say that a breach of 1432 would be a bad thing for the longs.

But if you’re bearish you don’t even have to wait this long as the weekly chart dons a NLSL at 1359.25. A breach here today would be bad medicine – but even if it doesn’t happen this week there are still two weeks to go until that NLSL expires.

I hope you kept a few lottery tickets on crude as it breached the Rubicon and then completely fell off the plate. FWIW – this inside day entry really paid off for us rats – I suspect quite a few of you guys are exhibiting smug smiles reading this. I think it can drop to our target but it’s permissible to start closing out – obviously a candle like this is asking for a counter spike.

Cotton’s inside day entry also paid off handsomely – I would start taking profits here as we are approaching support.

30-year bond futures – another trade that paid off in spates. I think we can hold and ride it higher but move your trailing stops up a little.

ZN also shot higher – that was one sweet entry! Time to get out though – resistance looming above.

If you think that was it then you would be wrong. Please step into my freshly decorated Madrid Ersatz lair:

Copper crossed our Rubicon (i.e. the 100-day SMA) – that was step 1. We should be short now but are waiting for confirmation at the 3.696 NLSL. I will add more positions once we drop below that mark.

Coffee’s down trend appears to be continuing – we just hit another daily NLSL which means we probably drop lower here. Don’t forget to bitch at your Starbucks barista if asked to pay four bucks of roasted bean water. Will coffee turn into the new nat gas?

Speaking of which – for the second time this week we are getting the coveted inside/inside day setup. You know what to do – if not please consult the cheat sheet. This one ought to be fun!

AUD/JPY gave us an inside day the other day and it’s been red candles ever since. No reason to exit – I plan to hold this sucker into its target near 78.

EUR/USD is touching support again. Although I’m feeling bearish here my emotions are meaningless and this remains a long trade until we see it drop through those two support clusters. FWIW – I hope this biatch falls off the plate as life in Europe is expensive! I’m paying almost four Euros for Vodafone’s ‘pre-pago’ Internet – ridiculous! Seriously now – I have a few grant in Dollars on me and I may be holding off exchanging them based on what I’ll see on this chart in the next two days or so.

AUD/USD failed the Rubicon test and is on its way to parity. I don’t see any reason for a bounce before that – if you’re in it then hold this sucker.

Same story for the NZD/USD – it’s going going going – gone!! Target near 0.78.

Cable – at its NLSL and a close below is our signal to get short. Of course if it bounces today or Monday then we’re going to follow the old trend – you know the drill.

That ought to keep you busy for the last hour. Enjoy your weekend 😉

Cheers,