Now Reading
Pick Your Poison
124

Pick Your Poison

Pick Your Poison

by The MoleJanuary 6, 2015

Welcome to our morning briefing. Here we are reviewing short term setups ahead of the NYSE opening bell. If you are a scalper or swing trader then these setups may be of interest to you. As usual keep in mind that these are short term setups although they could be used as early entries for more longer term positions.

2015-01-06_USDMXN_briefing

Pretty quiet out there – crude, cable, and Euro even lower (didn’t I tell you to wait?) but no big moves overnight. The Mexican peso may be a ST setup as it’s back at the 25-hour SMA plus there’s a NLSL at 14.935.  If you want to be long try to grab an entry near that with a stop below 14.92. Time for the SMA to offer support and carry it higher.

2015-01-06_NQ_briefing

Equities – the one setup I see this morning would be on the NQ as it’s offering us a correlated NLSL and 25-hour SMA. Be long above 4170 and short below 4165 – plus/minus. I actually like this one, the only fly in my ointment is this:

2015-01-06_events

Quite a lot of event risk, especially tomorrow, and that’s been the game we’ve had to endure almost every month now. Price gets pushed toward a technical inflection point right before the FOMC meeting and then takes off like gang busters, not without shaking out a bunch of stops in either direction. Very tricky to get a seat on the bus.

So this is what I’m proposing:

  1. Don’t force it and make sure you get the entry you want.
  2. Get positioned today. Forget about grabbing an entry on EUR or USD pairs tomorrow – same goes for equities. Today’s the day to pick your poison.
  3. The trading range in equities is probably going to be pretty contained today (no promises but these are the odds). Place your stop a reasonable distance away but you can be a bit tighter today. NOT tomorrow.

The idea here is to get in early – which has low odds of happening but is your best play in tape expecting sudden volatility jumps. Watch the Zero today for early signs of accumulation – divergences and rate of participation is what you should look out for.

Now there are two charts which you MUST watch like a hawk – and they’re already offering a hint of what market makers may be up to right now. Please meet me in the lair…

evil_separator

It's not too late - learn how to consistently trade without worrying about the news, the clickbait, the daily drama and 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.

Please login or subscribe here to see the remainder of this post.

You have been briefed – now have fun but keep it frosty. See you guys later this afternoon.

Cheers,

Sign up here to receive my FREE early morning briefing:

About The Author
The Mole
Mole created Evil Speculator amidst the chaos of the financial crisis in early August of 2008. His vision for Evil Speculator is a refuge of reason, hands-on trading knowledge, and inspiration for traders of all ages and stripes. You can follow him and his nefarious schemes at the usual social media waterholes.
Enjoyed this post? Consider a small donation to keep those evil deeds coming!

BTC: 1MwMJifeBU3YziDoLLu8S54Vg4cbnJxvpL
BCH: qqxflhnr0jcfj4nejw75klmpcsfsp68exukcr0a29e
ETH: 0x9D0824b9553346df7EFB6B76DBAd1E2763bE6Ef1
LTC: LUuoD6sDWgbqSgnpo5hceYPnTD9MAvxi6c
PayPal: https://paypal.me/evilspeculator