Monday Snoozfest Wrap Up

And there you have it – the type of session both Scott and I predicted over the weekend:

Pretty solid positive Zero signal all day – one dip which was as weak as American draft beer and thus did not manage to take out VWAP. The subs seemed to be happy today, so all was well in the evil lair.

Geronimo did its thing and entered at the very low of the day – that’s the way we like it. Unfortunately the first candle moved so fast that I’m sure most subs missed that 1279.25 entry. For the record – this is not the norm and in most cases there’s plenty of time to take the entry near the alert’s entry price. However, if you think that you may be missing out altogether I recommend you take the price you can get and not shift the target. However, you should retain a 12 tick stop as you don’t want to assume more than the default risk. FWIW – sometimes we get an alert and are able to get an even a better entry – so, over time it all evens out.

BTW, today concludes the January monthly candle and in the past 30 days the SPX was able to eek out a whopping 9.78 handles, which is 0.77 percent.

Okay, here’s Scott’s take on today’s session:

Scott’s Setups

Today was kind of painful for me, I got stopped out of 2 positions and my stop in AUD looks to be hit (Yen, GBP, and AUD for a combined 1R loss).

It happens. We move on.

If you read my weekend post about what was the highest probability outcome, its playing out EXACTLY LIKE DAT. A small range day painting a floor.

Today was an inside day, and a FAKEOUT INSIDE PERIOD SETUP long.

And its also a RETEST VARIATION SELL setup. What this tells me is that bulls are painting a floor, and gathering forces for another assault on 1300. If the bears want to seize the day, they have to do something, right now. A break of the daily low here is a short, but its the lower probability outcome.

So we have both long and short setups, bullish and bearish evidence. My plan is to be unbiased and go with whatever price sends us here. Make no mistake the highest probability here is a nice deep retrace of the highs (see my weekend post). If you are short on a small timeframe, consider jumping from your short positions on a break of the daily high. My concern for the long signal is that there isnt really much room before it runs into old resistance, which makes this a marginal trade IMO.

And we have a bullish non-confirmation es futures and $spx.

Moving on we have an OUTSTANDING setup in euro. Remember how I told you to wait for the retest of the high? This is why. There is still potential for another round of short squeezing until we break that daily low.

In GBP I got stopped out of my short setup and into the long setup I posted yesterday. I will be jumping out at the trendline posted and looking for another short.

See how lowering the stop and taking the long setup eases the pain? Instead of taking a full loss we took a .8R loss and are now in profit on the long, with every likelihood of evening out the earlier loss. Unbiased trading!