Setups Galore

It’s raining in Valencia today and on the trading front it’s raining setups. We’ve been busy beavers this morning and already reaped some fine rewards. But frankly that is thwarted by the sheer flood of excellent setups I see in the works right now. Yes, some of our recent trades – e.g. crude – got taken to the cleaners. But that’s how we roll – if the market takes a turn we don’t ask questions and shift our positions accordingly.

If you remember – the spoos held right at the 25-day SMA yesterday and it seems buyers paid attention. We had a possible floor in place but before we can think long I would like to see breach of the 100-hour SMA. Otherwise there’s really not much to do here right now.

Gold – yes, that was a sweet entry today. Congrats to all the rats who took it. When I looked at this setup this morning I liked it quite a bit as we had closed back outside the 100-day Bollinger yesterday. That’s pretty bullish and quite frankly I was crossing my fingers for a long. I don’t know how much upside edge we’ve got here right now. All I know is that this is a very bullish move for gold – the fact that we couldn’t even close back inside the 100-day BB is very positive and we may see a continued short squeeze.

Crude was not playing ball – I got stopped out of my short and am now tentatively long. Not liking this trade very much as a daily NLBL looms above. Let’s see what happens there and we talk….

AUD/USD – if you took a long then be aware that we are about to slam into that daily NLBL. We may breach it but if it slows down for mor than a few hours then it may be time close out and wait for an official daily breach.

I’ve got a lot of goodies waiting below – please step into my lair:
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Great ST entry right now on copper – as we are back outside the 100-day BB this could turn into a nasty short squeeze. Obviously a failure here would lead us lower. Either way – GREAT setup!

Now if you missed the coffee long at the Maginot Line then the 100-hour SMA is your second chance to get long. Wait for a decisive breach.

Bonds – the 30-year is back at its 100-day SMA who knows what it’s up to next. This may be a retest variation buy – I think the 100-hour SMA is where I would take a long entry. At the same time this also marks a good short setup if we fall below.

The 10-year in a similar configuration – I think it may lead ZB actually.

Corn – picture perfect sell off and approaching support. Let’s see what happens there.

Same deal on Soybeans – wait…. for…. iiiitt!! 😉

Currencies – AUD/JPY right at the Maginot Line and already bouncing. If you look carefully you notice that the 100-hour lines up with the 100-day. LOVE setups like this. That’s the stuff we rats live for!

EUR/JPY – I’m waiting for a ST entry here at the 100-hour SMA, which would confirm that a low is in place. If we drop much below the 100-day SMA then I think we are going d-o-w-n.

EUR/USD – it’s touching 25-day SMA support and Mole’s exchange rate is going to get hammered again. The 100-hour SMA breach will probably get us into longs. A breach through the 25-day keeps us short.

Another juicy FX setup delivered courtesy of the USD/CAD – we are right at the 100-hour SMA which correlates almost exactly with the 25-day SMA. You know what I’m thinking obviously.

Have at it and keep it frosty!

Cheers,