Last Chance For The Bears
I’m going to have to be short and to the point today as I’ve worked all weekend to get Thor and FractalMonger out the door. Plus I have important other business to attend to and I’m literally squeezing this one in before running out the door.
But things are actually crystal clear up here and all you need to know starting right now is the following number:
Yup, that’s pretty much it – the 100-hour SMA runs through there and we just retested it. Above it the bears are toast and chances are they’re going to squeeze this thing higher. Below it we may get the chance to enjoy a most delicious Last Kiss Goodbye (LKGB) setup. I am crossing my fingers that it’ll be that scenario but who are we kidding – how often in the past five years have the bears been able to hit the ball out of the park? eXactly…
What’s curious is that we’re seeing a slightly elevated VIX right now. Is this supposed to be some cheap bear trap? Doesn’t make much sense to me and I checked the VXV:VIX and VIX:VXO ratios – nothing suspicious there – all in line with today’s gyrations. Obviously they’re going to make this difficult here and Scott was right when he mentioned that this may be the sweetest opportunity they bears have had in a while. Whether or not they can live up to the challenge is another story. In any case – the 100-hour SMA will be our guide – simple and that’s how we like it.
The EUR/USD has been on a tear today which isn’t really surprising given how oversold it’s been. Outside of both the weekly and monthly BBs – the stop watch was literally ticking. Now this is a good start but I need to see more follow through, otherwise we could easily see a LKGB here before hitting 1.2.
Two setups below the fold for my intrepid subs:
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That’s all I got time for today – see you guys tomorrow. And if you haven’t yet – sign up for FractalMole and/or Thor – both are still free right now.