Moving Targets

A nimble disposition has been key lately not only for market survival but also for maintaining one’s sanity. My prior long position in the E-Mini was stopped out at break/even during yesterday’s sell off, and depending on market conditions a re-entry certainly was on the table. Which briefly presented itself late in the session and thus decisive action became the order of the day.

The main supporting argument for this entry was a bullish divergence on the Zero indicator after a rather rapid sell-off. Truth been told the Zero signal was not in the ‘must take’ category and I would have not taken action had the preceding sell-off been less violent.

But alas the potential for a scare-the-children shake out was on the table, which is why I made sure to not only post my entry here but also emailed it to all of my readers around 11:30am Eastern. I’m not sure how many of them took action but at least thus far it’s looking like it may have a leg to stand on.

That said, the downside potential here is significant, so let’s talk about a short entry, should the bearish scenario assert itself today or tomorrow. For one I would not necessarily go short on a breach of ES 2790. Rather I would make sure to wait for an LKGB (last kiss goodbye) reversal accompanied by a bearish Zero signal.

The downside scenario actually has good odds to get us to about ES 2750 or perhaps a bit lower. So although I’m currently long (again) the profit potential for the bearish side is probably as juicy as that of another push higher. Too much frustration has accumulated over the past two weeks as the bulls seem to remain incapable to conquer the coveted 2800 mark once and for all.

Okay – I guess the writing has been on the wall for days now but I’m finally out of my gold position and truth to be told I got lucky here in that I was forced to close it out before the roll-over into the June contract.

I was planning to do it today but when I saw gold once again decent to my entry range I just said FU-IT and closed that sucker out. If I had to do it today I would have only been down about 0.2R excluding commissions.

For the record I must say that Ms. Market has beens suspiciously gentle with me lately, which means I better watch my six as my luck is due to running out.

My ZB campaign has been on fire and I just advanced my trail to ~3.5R with the prospect of another R or two if it decides to overshoot its upper 2.0 Bollinger. Futures do no run like stocks and short squeezes in the futures as well as in Forex recurrently has a tendency to overwhelm retail traders.

Otherwise I don’t have any new entries on my roster right now. Plus I have been doing extremely well during a vacation month and really don’t plan on pushing my luck 😉

Shameless Plug

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