Monday Morning Activity
Monday Morning Activity
It’s getting pretty toasty over here in Valencia and the air conditioning are doing their best to keep temperatures within a tolerable range down here in the lair. The transition to summer here in Spain is pretty drastic and very different from what I am used to from my two decades living in Los Angeles. Two weeks ago it was still chilly and rainy but then someone somewhere in Madrid throws a switch and the entire country turns into a smoldering but humid oven.
Alright, I’m seeing a pretty nice entry opportunity on the spoos this morning as we are now inside a cluster of support on the daily panel. There’s the 25-day SMA near ES 2079 (Sep contract) plus a daily NLSL at 2082.75 which is currently above us but may be recovered during the session. Quite frankly this is probably as good as it gets for grabbing long entries on the equities side this week. Further weakness would mean a more pronounced shake out and that has a target range near ES 2020.
Keep an eye on gold this week. It’s been on a tear after pulling a major fake out and is now at the dare or truth point on the weekly panel. A push above 1290 and then 1300 clears the way to a short squeeze of biblical proportions. Before any of that happens I expect a bit of turmoil and for us steel rats that means possible entry opportunities. But let’s be patient for now – before we strike we first we need to wait for a bit more context on the daily panel. Yes, it’s possible that gold blasts off and doesn’t look back but chasing that series of green/white candles at this point is not part of my rule set. Of course trend traders would disagree
And you ARE long corn, right? Just checking as I have been pimping it here for two weeks now. We may see a final shake out but this one is going to explode any day now.
The EUR is dropping and I’ll be heading to the ATM again this evening (when the city cools down a bit and the tourists are gorging themselves with tapas and cheap beer). A drop to 1.2 would be a buy for me – as much as I hate it but this looks like a pretty formidable support level on the daily panel.
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