Dune Day

Quite a bit of movement today but I don’t have much to add to our view on equities. It’s been a cruddy session so far and on the Zero the tape earned Mole’s Mad Monks Rollercoaster seal of approval:

As you can see the 60-min signal has mostly remained below the mark and thus far the bulls have blown an opportunity to charge. Or perhaps strong hands simply want to see lower tape for a reload.

The only context I feel worthwhile sharing is on the YM which touched its 25-day SMA today as well as that diagonal I pointed out yesterday. As I’m typing this there’s another attempt to take it out – so we shall see how we end up. Should we breach and close below it then I think we’re talking more profound correction here. Strangely the NQ has been holding strong thus far and its daily NLSL at 3,468.75 has remained intact. We shall see…

On the setup side of things I’m striking out. It’s a bit of a Dune day – you know ‘traveling without moving’ – quite a bit of velocity all around but we’re keep reversing. Or for you physics guys – a lot of speed but little velocity. The one single setup that may be worth our while is the NZD/USD. We’ve got a passable inside day (thus far) and it’s happening within a gap produced by two converging SMAs. So either breach tomorrow would be a good way to get positioned – stop on the opposite end of course. This one is ready for the plucking starting tonight.

And that’s it for today – don’t let the tape get the better of you – it likes to play tricks and exhaust your resources. If you’re short then be short and if you’re already in cash then don’t worry about a few lost handles should we continue lower. Better wishing being in a trade than wishing to be out of one 😉

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Cheers,