Serendipity

Looking at the Zero earlier today I couldn’t help but laugh as those cattle prod swinging market makers are doing their very best to keep both sides trapped in an emotional roller coaster from hell. But heck – as the saying goes – don’t hate the player – hate the game! It’s kind of amusing that so many people flock to trying their luck at trading the markets. To say that it’s not for the faint hearted would be a gross understatement.

On Friday I suggested this EUR/CHF setup for the subs – at the time the odds suggested a possible short trade but as soon as that cluster of buy net-lines was breached the writing was on the wall. Well, I hope at least some of you watched this thing when it opened slightly above above all three buy net-lines yesterday (i.e. 1.2270). That was the time to dive in and take on long positions galore. The rest is history.

Now today is shaping up to be an extremely interesting day – plus I have two more FX setups to share with my intrepid subs:
[amprotect=nonmember] Charts and commentary below for anyone donning a secret decoder ring. If you are interested in becoming a Gold member then don’t waste time and sign up here. And if you are a Zero or Geronimo subscriber it includes access to all Gold posts, so you actually get double the bang for your buck.
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Let’s start with the AUD/JPY which is currently wedged between two opposing net-lines. You can either play bounces inside or take whatever Net-Line is being breached. As an extra bonus we also have opposing net-lines on the hourly panel right now – admittedly we are not anywhere near those. But it makes things interesting in the next few hours.

And the fun doesn’t stop there – we have a similar setup on the EUR/JPY. That 107.88 buy net-line proved to be too much to handle – perhaps it’s time for the BOJ to step in once more? Perish the thought! Playing the swings here may be the right medicine as those Yen vigilantes still appear to be a bit shell shocked.

Finally – my favorite chart of the day – assuming of course it holds up until today’s close:

Yes, we are currently looking at an inside/inside candle shaping on the S&P 500. We should be so lucky! This affords us an opportunity to trade an break out of indecision central with minimum risk. Leave it up to the Opionators to predict which way this thing will break. Instead use today’s low at 1240.75 as your inflection point to the downside and today’s high of 1259.62 as your launching pad for a push higher. Either way I expect the ensuing move to be considerable and thus profitable.

UPDATE @ the closing bell: Those fuckers – okay, now the game is a bit more difficult as they may shake out folks taking the prior single inside day signal.

So it’s fine to go long here – but only play it in the spoos – do not buy SPY or DIA, or IWM here and sit on them overnight. Those cats may turn a fast one on us and you want to be able to hedge yourself overnight as soon as today’s highs are being taken out again during AH monkey business tape.

Also do not use 1240 as your stop – stay nearby. I don’t like the timing of this breach and we need to err on the cautious side. Okay, you have 10 more minutes to play the spoos – have fun.