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Substandard High Intensity Tape
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Substandard High Intensity Tape

Substandard High Intensity Tape

by The MoleSeptember 5, 2014

In the past week we have been seeing increasing volatility in all equity indices – as of right now we remain locked in a limbo period (for more info on the definition please point your browser to my pertinent post). In a nutshell the implications here are to a) stay the heck out or b) play the swings to your best abilities.

2014-09-05_spoos_update

Now when it comes to limbo tape there are of course various flavors. All of them are highly volatile of course as the idea is to produce maximum amount of noise in order to draw impatient participants into emotional trades. Revenge trading and tape chasing is the order of the day and market makers usually love every minute of it. But there is one flavor that’s particularly nasty and it’s the type we’re stuck in right now – long wicks combined with small real bodies and all that in a sideways trading range. The technical term for it is Substandard High Intensity Tape – or more commonly referred to as SHIT.

2014-09-05_spoos_ST

Suffice to say that if you happen to come across SHIT tape you stay the [insert expletive of your choice] out.

Seriously speaking however – this thing should have been resolved by now and the more it coils up the more explosive I expect to be its resolution. Unfortunately I do NOT see any directional signals here that I would feel comfortable considering, let alone use for anything but intra-day swing trades. At this point we should embrace the fact that we do not know which way it’ll turn, at least not yet. And if that means we may miss the rocket then that’s okay. This is the type of game you’ll only win by not playing.

2014-09-05_shut_up

Alright – I know: “Mole, shut the hell up about your damn Dollar campaign already!” I apologize for having to post this chart again but there has been a change. Given the current velocity I have decided to set my trailing stop to 15% MFE and turn it into a monthly campaign. I am certain a shake out is coming soon here but I now see the potential for a run into 85,

2014-09-05_Dollar_PNF

I looked at several intervals on my P&F chart and ~85 seemed to be the consensus. So let’s see if it plays out.

Two juicy commodity setups below the fold – so please grab your secret decoder rings:

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Alright, I think we’ve done enough damage for this week – it’s been fun. And you all know what comes next for the Mole:

beer3

 

That looks about right. (the beer of course)

Cheers,

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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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