Stretching The Rubber Band

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.

The E-Mini appears determined to produce a 12th higher high in a row. The odds on that may be historical and this rubber band is going to snap at some point – BUT you know what they say about stepping in front of a speeding bus. Although I’m not interested in any daily long positions there is no reason to not play a short term NLBL breach higher. What I find very interesting is the now rather extended Bollinger bubble compression. Most definitely short on a breach of that 1674.25 NLSL.

Similar picture here on the NQ which 25-hour BB now starts to resemble a fat mambo who just gobbled up some hapless retail bear. Short term long on a breach of that NLBL – short below the lower BB (as we lack other context).

AUD/CHF – attempting to breach a still falling 100-hour but the NLSL may offer additional resistance. My triggers are on the chart – I picked the 25-hour SMA as it’s pretty close to that NLSL. So a double breach would be sufficient evidence that a short trade may succeed.

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Cheers,