Lower Highs And Lower Lows

I’m going to have to be brief tonight as I’m running late and I have a mountain of chores stacked on my desk. So let’s dispense with the formalities and let me try to get you up to speed on what’s going on and where we may be heading. More weakness in equities and right now the hourly panels are our best guides:

Forget about all the lines and indicators – that’s beside the point right now. What really matters here is PRICE and the spoos are painting lower highs and lower lows. As long as we don’t breach ES 2100 we are heading lower.

Selling pressure is definitely for real – observe the rather interesting UVOL/DVOL ratio spikes mid session. There’s a bit of panic selling right there – or perhaps it’s more distribution. Someone thought they may have had more time?

The Zero signal is for real – compare the signal range today with what we had to put up with over the past week or two. And the big spikes are to the downside – definitely noted.

As you know I prefer the context on the NQ right now – I think NQ 4452.5 is the first and 4458 is the second line of defense for the bears. Also note that we sliced through the daily NLSL at 4427 but thus far it’s holding. If we close below it today or tomorrow we are going to 4350ish.

AUD/CAD update – I got pretty lucky there as I was about to grab a long position on a drop to 0.89. Fortunately the tape started to run away from me and I pulled it just in time. Better to be lucky than good – at least every once in a while 😉

I probably should have looked at the daily panel this morning – that’s a stack of NLBLs right there and the odds for a breach were perhaps a bit low.

Gold update – nice entry there this morning and I’ve moved my stop to the break-even point. I’m holding this as it may continue lower.

My favorite chart today – NG – I also snug in there and for once it actually behaved and didn’t throw me out of the saddle. So far so good. I love the daily and weekly context here – unfortunately I’m less enthused about all those daily NLBLs above but I’ll deal with that if/when we get there.

Crude – got stopped out and then managed to jump back in on the way up. Only caught 1/4R however but I’ll take it and will built my position if it decided to finally abandon this range.

That’s all I got for today – I hope you guys grabbed one or two of this morning’s entries. If nothing else I would enjoy a bit more participation in the comment section. Alright, dinner’s waiting and Mrs. Evil is getting impatient – I have been advised to hurry the heck up. See you guys tomorrow!

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Cheers,