The Good, The Bad, And The Ugly News

I have to say that I really do not like this tape one little bit. And I am not talking about the stop outs that have occurred since yesterday – that’s part of the game and I usually don’t even think twice about it. Rather what I’m referring to is that I am seeing an emerging pattern as of late.

We have things come into almost perfect sync and the very next day everything but equities turns on a dime as if prior support/resistance levels didn’t exist. Volatility goes into spasmodic mode and almost everything detaches. This is the second time this happens in the past two weeks if I recall it properly and to me it feels engineered.

So, the good news is that we are probably getting a bonafide VIX buy signal today. Yaaayyy!! The crowd goes wild…

The bad news is that we already touched our first target zone. The really bad news is that we didn’t stay down there – instead we immediately snapped back. Which puts us into Zero Edge Central – and I am not referring to the bearish watering hole that shall remain unnamed.

Of course if you have been caught long vega since last Friday then the really ugly news is that you are dead – perhaps you just don’t know it yet. Best to check your pulse as I’m pretty sure you got strangled by Mrs. Volatility. That was one nasty squeeze and a lot of hobby bears took it in the rectum today. Maybe they like that sort of thing – seems to happen a lot. Don’t you wish someone would have warned you about it? Oh yeah – now I remember – I did!

I don’t have much in terms of setups today and I’ll just post it in the clear today:

Copper was been testing support and then ran away from us yesterday – very difficult to catch that one unless you got in on Friday. I already thought we’re going to miss out but it seems we’re getting a nice retest here.

What I like the most about this inside day setup of course is where it’s happening. Suffice to say that I would love to see a long breach here. If you don’t know how to trade inside days then please consult the cheat sheet.

And then we have crude – again! We enjoyed two nice ID setups and banked some mighty coin with both. The one triggered last Friday however hasn’t gone anywhere yet and today we are basically back to whence we came. But it’s a setup and being the mindless mechanic market megalomaniac that I am – I’m going to take it.

Cheers,