Slippery Tape
Slippery Tape
My E-Mini lottery ticket long was just taken to the woodshed and severely manhandled. That’s fine – my expectations of a floor forming in the midst of all this noise was very low to begin with. We now are in earshot of the 2080 mark which is our last and best chance for a bounce.
The 25-day SMA is at 2083 and change – it only has served as soft support in the past few months and cannot be relied upon for stalking any contrarian positions.
The Zero shows us no participation whatsoever down here (ZL on the right is plotting at -0.8 which is pitiful for such a sell off) suggesting that this again is nothing but an engineered stop run. Just to be clear however – that doesn’t make it any less real 😉
I recommend a wait & see approach at this point – we don’t want to get drawn into blowing capital on speculative entries, especially during the ongoing market phase. Speaking of which – a few days ago we had a chance to detach and spike higher but the current shenanigans unfortunately do suggest that we are going to be stuck in sideways hell for quite a bit longer. And that means more stop runs – more dime turns – and more sideways volatility across equities. It sucks but it is what it is and we need to adjust our trading activities accordingly.
Watch the Zero for bullish divergences today but take your time and if you must participate I suggest you play with very small position sizes (i.e. 1/4 or less). She’s in a foul mood and she ain’t taking any prisoners today.
The future is now – so don’t bring a knife to a raygun fight. If you are interested in becoming a Zero subscriber then don’t waste time and sign up here. A Zero subscription comes with full access to all Gold posts, so you actually get double the bang for your buck.
Cheers,