Thursday Morning Briefing

Welcome to our morning briefing. Here we are reviewing short term setups ahead of the NYSE opening bell. If you are a scalper or swing trader then these setups may be of interest to you. As usual keep in mind that these are short term setups although they could be used as early entries for more longer term positions.

Just two days ago I posted the following in my afternoon market update: I was slumming over at the Slope and other bearish watering holes and am seeing a healthy dose of capitulation, thus further discouraging me to participate in any long trades lasting more than a few hours. Besides the lack of participation on the Zero Lite also gives cause for concern. You may be sick of hearing this but although I don’t know when this run ends the odds of participation do not offset the possible wipeout risk. Once that last buyer is looking for someone to sell back to I don’t want to be anywhere close to what happens next.

Well, that statement wasn’t really prophetic as what coincidentally happened the very next day was long overdue. I did see a possible long opportunity on the NQ as long as 2,998 would hold but that went bust overnight. What I find rather intriguing and supportive of the Net-Lines concept is that the NQs attempted a run higher and ran into a wall just ticks away that 3,010 NLSL. Very bearish and as long as we remain below 3,010 it’s possible this thing may have legs.

Similar situation on the spoos – attempt to run it back up overnight but I guess they didn’t say the magic word:

If you are short here then there’s not much to do. I don’t recommend chasing this thing down – the best possible setup would be a retest of those NLSL (a.k.a. last kiss goodbye). But if you missed it – don’t worry – if this is a harbinger of a MT or LT trend change then there will be a ton of opportunities to get positioned.

In terms of ST long opportunities right now it’s a bit of a roll of the dice. I currently don’t see any technical ST or daily support levels that I suspect may drive in buyers. A lot of people got royally screwed here yesterday and it’s very much possible they’ll continue to drive this thing lower. Today’s session will bring important clues. Always remember: the emotional candles aren’t what matters – it’s the follow up candles.

I sincerely hope you didn’t get caught with your pants down yesterday. If you did then well, you can’t say that I didn’t warn you several times 😉

Gold meanwhile is advancing higher and has now approached a multi-day resistance cluster. I realize this is a bit speculative but the daily chart does give it a bit more weight as we have a NLBL hovering right above (that inside period may hold but isn’t ready until tomorrow).

Not much of interest in the FX corner this morning – GBP/CAD could be interesting in a few hours once it either clears those two SMAs or drops through them. Mind that NLBL – additional context that could force price to finally pick a dirction after the current sideways push.

It’s not too late – learn how to consistently bank coin without news, drama, and all the misinformation. If you are interested in becoming a subscriber then don’t waste time and sign up here. The Zero indicator service also offers access to all Gold posts, so you actually get double the bang for your buck.

Cheers,