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Sorting Out The Mess

Sorting Out The Mess

by The MoleDecember 20, 2012

If you are attempting to make sense out of the SPX or E-Mini by looking at the daily chart then you may be scratching your head right now. But don’t despair – the Mole is standing by to assist. Sometimes when the daily view lets you down it’s best to either zoom in our out to gain a better perspective.

And today it’s the short term panel that’s making the most sense. Apparently the 100-hour SMA is providing support since late last evening and after a bit of whipsaw it’s now pushing above the 25-hour SMA as well. Now that one will start to flatten out soon and probably follow the 100-hr up through Friday. Which means we’ll have a pretty solid support base to work with – if both SMAs fail then we’re heading lower. And if she holds then we’re probably going to climb the 25-hour higher as soon as it starts to swing back up. For now we are a bit in limbo land. The next chart is not helping to make things more clear unfortunately:

I posted this one yesterday and only minutes after I put it up the tape started dropping into the close. Coincidence? I think not. Well, we’re seeing similar shenanigans as yesterday – as I’m typing this the E-Mini is pushing sideways but SPX:VIX is continuing to drop.

Meanwhile over in the woodshed the Zero Lite is going complete flatline. Not surprising as Christmas is only days away – but this means pretty much anything can happen anytime. And it seems whoever is pricing volatility seems to agree.

I have a little goodie for the peanut gallery and there are two commodities plays for the subs. I would have loved to post some FX setups but TOS blew up their charts with their latest release (what else is new) and thus I can’t trust what I see on my indicators.

Anyway, ORCL is looking particular juicy today. It’s rather interesting to see an inside day after the bear stomping candle we saw yesterday. I would be tempted to play either breach with very small exposure. Any takers? 😉
[amprotect=nonmember] More charts and non-biased 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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Natgas is bouncing between its 100-day SMA and a daily NLBL – I would take a breach on either side. In between I’ll do nothing and so should you.

Crude heading into resistance – I’m completely agnostic here and would take either the SMA breach or a failure. I probably start with a short position and then grab a long if I get stopped out.

Have fun and keep it frosty – remember there’s not much participation and that means we’ll see a bit more volatility over the coming days and especially after Christmas.



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.
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