Once Again Only The Paranoid Survive
Having paid tribute to it right here on several occasions over the past years  I was once again reminded of late Andy Grove’s favorite motto earlier this morning when I saw the flash crash in the silver futures. Apparently rumor has it that someone (Mexico.. cough.. cough) dumped around $200 Million notional of Silver in just a few minutes. Which presented us all with a great entry opportunity – twice – if you happen to be a high frequency AI directly hooked into the IEX pipe reading this. Incidentally if you are then let me be first to announce that Evil Speculator welcomes our glorious new robotic overlords.
Anyway, the take away lesson from all this was that we I was pretty explicit about not chasing silver higher earlier in the week and, quite to the contrary, were looking for an opportunity to play inverse swings which were clearly on the horizon. Of course the exact pace of events was out of my hands and as of right now we are relegated to waiting for yet another retest of the 100-hour SMA. If it comes after volatility dies down a little then I will be sure to highlight it here.
Some good news: Crude continues to play ball and it is now time to advance our stop higher. Where exactly is up to you (and depends on your campaign management) but I would definitely keep it below 53.3 if you plan to ride this pony higher. Caveat: there will be bumps on the way and crude can be a bit of a rough ride, but clearly once she gets going she doesn’t look bad and thus it is indeed worth riding out the initial hassle.
Copper has reverted back and painted a spike low to which I will now advance my stop. If that one breaches it would most likely stop me out, thus given the dynamics I may as well lock in a bit of profit. FWIW this one really needs to get out of the gate or she’ll die in the cradle. Upside for any laggards: this is a prime entry opportunity.
Now VEA came across my radar this morning as it’s touching its upper 25-day BB and in general has pushed back into a reversal range below 37. The Financhill seasonal stats suggest that it’s heading into a weak month, thus…
I propose a short setup but only after a dip below that daily Net-Line Buy Level at 37.46. If that happens or we see a RTV-S then I’ll be short with a stop > 37.7.
It's not too late - learn how to consistently bank coin without news, drama, and all the misinformation. If you are interested in becoming a subscriber then don't waste time and sign up here. The Zero indicator service also offers access to all Gold posts, so you actually get double the bang for your buck.
Well, it’s Friday afternoon on my end and I have important business (ahem) to attend to. Congrats on surviving the first trading week of 2017. And if you’re Spanish or Latino: ¡Un feliz día de los reyes!