The Gates Of Hades
The Gates Of Hades
It seems that merely announcing a trip overseas now throws the tape into a tailspin. Who knows what happens when I actually descend on the old continent – one but wonders. More seriously however – it seems that all the long term divergences and momentum/sentiment extremes I posted in the past few weeks are finally starting to kick in. In case you are wondering whether or not equities are about to fall off the plate here are some important support levels that should help you structure your trades. Obviously things are quite fluid right now and I may post updates as the day unfolds.
The spoos are literally standing at the gates of Hades represented by the 1386.25 NLSL combined with the 25-day SMA. Although this innocuous support level may not mean much to most of you I believe that it is all that stands in between going back to 1400 and slipping into 1350. Could get ugly here and that’s a great opportunity to be long with only a few ticks of risk. OR get short in a hurry once we breach it – 1380 is probably where things start accelerating. May we get whipsawed out? Yes, but that’s why we play it with small positions – perhaps even short term OTM options. Whatever happens next should happen in a matter of days.
But wait there’s much more – please step into my dusty lair:
[amprotect=nonmember] More charts and cynical 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.[/amprotect] [amprotect=1,13,9,12,5]
1380 is not only a nice round number – it also is near a prior volume hole which already proved to offer support on a prior occasion. So if we go short this is probably our inflection point – a drop below this may really
Of course we are also following the currency side as well – which however is looking rather dismal. The AUD/JPY for one is looking as if it’s going to slide down its lower 25-day BB – plus the daily is now painting a bonafide H&S and we are right at the neckline. Very exciting!! If we get a retest of those NLSLs then you can try a short position – I am not sure we weil however and if you took that NLSL entry overnight then I recommend you do nothing and wait. Support at 82.64 at the 100-day SMA.
EUR/JPY – ouch – what can I say – sliced through its 25-day SMA and its NLSL – you should be short here and do nothing until stopped out. Target and support area is 106.50.
Cable – is looking a bit more supportive. We sliced through a NLSL but then bounced back at the 25-day SMA. I am long here with a stop right below that 25-day SMA.
EUR/USD sitting at its 100-day SMA – additional support at 1.304 and then of course there is 1.3. But if that lower 25-day BB gives we are going to 1.28.
Finally the chart that rules ’em all – and I hope you were watching it closely since I posted it yesterday. Ole’ bucky managed to heave its battered carcass over both SMAs and is now jabbing at its next NLBL at 80.005. VERY bullish and watch for a breach here. Now here’s a caveat – the upper 25-day BB is right above and I don’t think this is going to go smoothly but if we push higher be long but prepare for some whipsaw and shaking out of some weak hands. Rome wasn’t buit in a day – it took at least three days if I remember correctly 😉
[/amprotect]Alright – I’m grabbing breakfast now. Keep it frosty my intrepid steel rats! The charts are your friends – fade the news.
Cheers,
