As you guys have been unseasonably prolific on the comments side I gather that I am not the only one who’s a tad suspicious about today’s gyrations (or yesterday’s for that matter). Let’s see what we got:
The Zero Lite has gone completely flat – and sometimes that happens just before a little surprise move. Which direction? Well, I have not the slightest clue but fortunately we do have the luxury of a bi-directional setup:
As you may have guessed already I am talking about a potential inside day. Not valid unless we close on the inside of yesterday’s candle. The odds are good for that but of course we would all prefer to keep today’s range intact. If you are new here and don’t know how to trade an inside day then I suggest you go and check out our cheat sheet.
UPDATE 2:20pm EDT: Crap – we took out yesterday’s lows so the ID setup is DEAD. Sorry guys… still the continued lack of a Zero Lite signal is rather suspicious.
I would also like to point out an interesting formation on the VIX – apparently we keep testing the 25-day SMA but thus far it has been holding up, despite the fact that it’s been dropping rapidly. Food for thought and although no guarantee of more upside (on the equities side) I think keeping an eye on this may be good medicine. If the VIX pushes through then it would change the dynamics considerably. Most likely it would completely take out my Full Monty setup I covered last Sunday and it would also kill the bullish PO on our P&F. So I guess what happens with that ID setup on the spoos may have some rather profound implications on what happens next.
I don’t have much appetite for new setups until we see a bit more directional tape – so let’s just revisit whatever remains of yesterday’s list of victims:
EUR/CAD – I’m short but am not loving it. Have moved my stop down to just above today’s highs.
AUD/JPY – I got stopped out and am now long with a stop below 81.25 (the NLSL). Could this pair be leading equities again?
Ditto on AUD/USD.
Copper – that was a nice clean entry yesterday – just what the doctor ordered. I hope you picked up your prescription.
Natgas tried to throw us off the horse but it wasn’t too convincing. I’m long and my stop is below today’s lows.
Have fun and keep it frosty – don’t take on too much risk as things are a bit whippy here – it’s too easy to get emotional and miss the bus altogether.