Not Out Of The Woods Yet
Not Out Of The Woods Yet
Equities started to look slightly promising during yesterday’s sessions but the modest gains were reversed overnight and a new spike low has now been formed. Fortunately our ISL was well picked having missed this little stop run unscathed. Thus far that is as we are far from being out of the woods here. As a matter of fact I believe that as of right now the odds of success for our little lottery long ticket have dropped to 25% at best. Let me tell you why:
I usually place my ISL below round numbers which is why I recommended anywhere below 2560, which in the end turned out to be prescient. Quite frankly I do not like the current formation at all as this could very easily resolve downward and that very rapidly. The first two hours of the session should provide us with valuable clues and I hope you Zero subs are watching that one carefully.
Speaking of which, here it is and in particular the smoothed hourly panel (on the left) is starting to look quite droopy. Participation yesterday was miserable, the Zero Lite (on the right) was stuck within a +/-0.2 signal range. FYI – anything below a 0.5 signal (bullish or bearish) is miserable and a signal > 1.0 (or < -1.0) is starting to be supportive of the current direction. By the way, if you’re not a member then I strongly recommend you sign up now. You can thank me later after you avoided several bear or bull traps. Better yet – pass on the word
Now UVOL was fairly solid yesterday but wasn’t enough to produce sufficient distance between the Monday’s spike low and yesterday’s close.
Not to be the guy who told you that he ‘told you so’ but this may be a good time to remind you guys why I proposed you to load up on a bit of downside protection in the form of LT puts a bit over a week ago. Did you guys follow suit?
Okay, we’ve got ourselves a brand spanking new entry and it’s (drum rolls…. oh nooo!!) crude. Yes, crude, the beaten dog’s ugly cousin. Sorry guys but I just can’t help myself here given the current formation on the daily panel. What I also like is that it’s holding up fairly well given the recent climb in the USDX. So long here or if you’re smarter than me (very likely) on a little retest lower with a stop below 50.58.
I’ve got another good one for my intrepid subs:
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