Out Of The Gate

With the 2018 midterm elections behind us it seems that investors have regained their confidence in an effervescent future for U.S. equities. The Zero participation signal during yesterday’s session remained solidly bullish with only brief dips below the zero mark. Be this as it may, at least thus far the post election short squeeze has nicely benefitted our long campaign, rewarding our early entry.

Here it is in all its glory. Note how the long term (hourly) signal on the most left panel already started to swing higher as the E-mini was painting a large spike low. Bullish divergences like that is why the subs love the Zero as to my knowledge no other momo/participation indicator leads like this. If you are an E-Mini trader and aren’t a sub yet then I strongly suggest you remedy the situation.

As you can see from my ongoing campaign I am trailing this campaign loosely at 1.2R while MFE has touched 2R already. If the E-mini manages to squeeze above ES 2826 then watch out! More realistically though I expect a shake out ahead which produces an inverse H&S pattern and then continues higher.

So why not just cut out here and re-enter?

Because of Evil Speculator rule #576: Overthinking and over managing your campaigns leads to losses and unnecessary stop outs. Or in other words – let your winners run.

Gold whipsawed around again and not only stopped me out at ISL but apparently is in the process of blowing an historic opportunity for a trend reversal. You got to give it to the gold bugs over the past decade – nothing but suffering.

But as you know this was indeed part of the plan as my inverse USD/JPY campaign is rocking and rolling now. Stop here also advances to 1.2R.

Eying the Dollar I am getting interested in grabbing a long position if it manages to breach 96.222 – yes I’m very specific. My stop would be < 95.69 but be more generous if you like. Obviously the general idea here is continuation but be advised that this could also turn into a another reversal pattern. Tough to say at this stage which is why I didn’t enter just yet and want to see a breach of the spike high.

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