Tape Without A Cause

Don’t even get me started on equities. The best decision I made this summer was to use SPF 30 and to completely ignore those mind numbing gyrations on the E-Mini. But an integral aspect of my personal life in hell is that some of my subs remain addicted to hearing about equities. Must be part of that same evil gypsy curse that impels me to howl at the full moon at night and maniacally growl at innocent bye-passers.

As annoying or confusing the recent swings on the spoos may be – what is becoming clear is that it magically seems to obey this diagonal resistance line. Now, I’m not saying that it won’t be breached but until we get there this may be a great spot for some swing trades.

A different perspective is offered by my AUD/JPY to SPX correlation chart. Usually a pretty good guidepost of what is to come on the equities side it started to detach in early August as the Aussie/Yen pair dropped all the way to support while equities pretty much remained where they were. Maybe this is a divergence that equities will eventually catch up with – however it’s getting pretty late in the game here and as I previously suggested we could be witnessing a sideways correction here. So let’s see what the AUD/JPY does next. If we see a bounce here then equities may just follow suit. And of course a good sign of that would be a breach of that diagonal resistance line I pointed out on the spoos chart.

The Nursery

The EUR/USD gave us a long entry but I’m not sure we’re out of the woods here yet. What’s interesting however is that diagonal support line that has been forming as of late (see the red arrow). Meanwhile we have the 100-day SMA exert downside pressure. This all should be coming to a point in the coming days and then we should finally see a resolution here.

Long breach today on the EUR/AUD – I hope you caught it. The implications here are serious as we have already seen a relentless short squeeze. But I think we may see a retest here – this looks way to easy.

AUD/USD – keep an eye on this one. I pointed it out yesterday and it seems to be in the process of deciding whether or not it’ll observe support here or not. Note that this one runs inverse to the EUR/AUD, so most likely they will run off in opposite directions.

Breach on copper – finally! It was driving us nuts there for a few days but I told you guys to hang in there. I hope you did as this one seems to be ready to rock & roll now.

Alright – I am seeing some very nice setups particularly on the commodities front today – please step into my lair:
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Inside day on natgas – very much like this setup. But don’t play this with money you can’t afford to lose – this sucker is known to move fast and thus don’t invest any money that may make you sweat.

Inside day also on silver – I am not sure why it’s not flagging an NR4 as I’m pretty convinced that we have one here. In any case – either direction goes here.

As you may have suspected silver is on the same track – same rules and if you want diversify yourself between those two. I personally prefer silver but I always pick the underdog.

Cotton approaching possible support here. I think the NLSL + 25-day combo may have a chance of holding up.

Similar setup on crude actually – if that one fails then the 100-day SMA would be my next pick. Very simple execution here – put your stop below the NLSL and be done with it.

In order for you guys to get into battle mood I even picked some light and relaxing (ahem) background music. That’s the kind of stuff that kicks my cerebral functions into fifth gear – especially when I’m busy parsing through my chart universe. Your mileage may vary of course 😉

Cheers,