The Eagle Has Landed

My apologies for the late post today – it took me a while to get set up this morning as the storage place with all my equipment is all the way out in Los Feliz. And half way there I realized that we idiots had forgotten the key for the padlock, which added another 30 minutes to the trip. But I’m all set up now with my gorgeous Apple Cinema display and a surprisingly fast Internet connection. As you recall I already shifted my circadian rhythm over the past week and in general it feels like I never left Los Angeles. It’s amazing how quickly the brain re-adjusts to a familiar environment. Before you know it you’re cruising all over L.A., cursing at slow drivers of a certain ethnic group, A/C and stereo cranked up, sending hapless pedestrians diving for the sidewalk. You know – Los Angelino style 🙂

Here’s a snapshot I took last night here in Hollywood on Beverly right at the tail end of a gorgeous sunset. Today’s going to be hot – somewhere around 89 and it’ll breach the 90 mark tomorrow. I love the dry heat here and couldn’t be happier.

Alright, let’s talk markets. As Scott pointed out – accumulation was in the works yesterday as evidenced by the NYSE UVOL/DVOL ratio. Buying pressure was solid and constant all the way into the close.

The Zero painted a pretty pronounced divergence on the hourly panel yesterday. Today’s session however (and yesterday) was driven by minimal momentum/participation suggesting prop desks and bots were running this.

On the SPX/VIX panel the ratio is leading pure price and I think this could easily squeeze higher.

So let’s look at the daily E-Mini which bounced at the 100-day SMA and the lower 25-day BB. The latter was actually the one which has been observed in recent history and the two together offered a nice opportunity for the bulls. Had I posted yesterday I would (like Scott) suggested to lighten up your short exposure here.

Long term we also had the 25-week SMA and a NLSL at 2036.5 – both of which I pointed out on Tuesday.

The NQ is lagging the spoos which is interesting as it’s been the more bullish index recently. As you can see the weekly NLBL at 4286.25 has held up nicely so far.

Alright, let’s talk setups – we have beautiful ones on our roster today. Here’s silver which I love short here until 15.565 where I’ll be long 1/2R, adding another 1/2R above 15.66. Frankly I would be happy either way – short or long and I have no directional bias.

More below the fold for my intrepid subs – please step into my Californian holiday lair:

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That’s it – see you guys tomorrow. FYI – while I’m here on the West Coast for the coming three weeks I will most likely post only once a day. Unless I fall out of bed very early – meaning near 6:00am. And that frankly happens rarely 😉

Cheers,