Monday Morning Briefing

Welcome to our morning briefing. Here we are reviewing short term setups ahead of the NYSE opening bell. If you are a scalper or swing trader then these setups may be of interest to you. As usual keep in mind that these are short term setups although they could be used as early entries for more longer term positions.

At the danger of beating a dead horse let me once more remind you of the insane swings we have witnessed on the equity side over the past few sessions. The hourly say it all – there’s a big battle raging and at least thus far it looks like the bulls are pulling the cart out of the mud. Quite a few long tails on the daily chart and the bears would have to deliver a punch below the belt line in order to even the scales.

Be this as it may, let’s focus on what we know. We are most certainly in a small volume island which is delineated by a whole around 1820 and a sharp drop above 1840. Hence the 20 handles of pain I have repeatedly referred to. And quite obviously this is going to resolve itself and that rather soon – I’m thinking by Wednesday we’ve probably seen a major move. However, the problem is that we don’t have a reason to go long here. I have no technical patterns I could pull out of my hat (or the other end of my anatomy) and the best we can hope for is that we’ll get something before we see that big jump (or drop).

Doesn’t mean we don’t get to play though – here’s the CAD/CHF once more facing upside resistance. I think the context is clear given the SMA and the series of hourly NLBLs. I’m currently short with a stop above the NLBL. The SMA has been well observed, thus I would be long if my stop gets touched.

More below the fold for my intrepid subs:

It's not too late - learn how to consistently trade without worrying about the news, the clickbait, the daily drama and misinformation. If you are interested in becoming a subscriber then don't waste time and sign up here. The Zero indicator service also offers access to all Gold posts, so you actually get double the bang for your buck.

Please login or subscribe here to see the remainder of this post.

Cheers,