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.

About an hour ago I sent an email out to all my subs: I do think the 100-hour SMA will decide the direction of the next few months. Consequences of a failure: In the best case scenario we go to ES 1380, our P&F target. The worst case scenario is we trigger a whole chain of daily support levels and we drop to 1320 or perhaps lower. So this unassuming ST setup may cascade into much more.

Obviously this takes a bit of attention as we seem to gyrate around this SMA for several days now. Which in itself suggests that it has meaning. But that is the key to trading – the hard work you put in ahead of time will pay off when things start accelerating and finally catch the attention of the masses. Of course that’s when it’s usually too late and time for you to take profits 😉

I probably should have also mentioned that a successful breach should drive us higher, thus we are at a binary inflection point here. I don’t think the bulls can tease this thing out much further without tripping over their own feet.

Gold is dropping nicely as I’m typing this – I’m looking for a touch of the 25-hour, which should offer some level of support judging by the past few sessions.
[amprotect=nonmember] More charts and non-biased 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.
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AUD/JPY wrestling with NLBL. It’s pushing into resistance which means the easy coin is over for now. A short here is justified but if we run past this buy level then the shorts could be squeezed.

Is this some inverse H&S I’m seeing on the EUR/CAD? That 25-hour SMA appears to be observed again and I want to be short until I see a breach. IF we push higher I think we could see it accelerate nicely. If we drop then support comes in at the 100-hour and the diagonal which are coinciding right now.

EUR/JPY running into resistance. Short here with a stop above both BBs. A breach of 104 probably drives us higher.

EUR/USD – yesterday I proposed support at the 100-hour and now we graduated to the next one, the 25-hour. I am currently short but with the other setups am prepared to flip directions should we breach here.

USD/CAD at support – you know what to do.

USD/CHF – same idea – long here with a stop below the SMA.

Bonds – the 10-year is on the move. I’m waiting for a touch of the 100-hour. Hey, it has worked before, right? 😉

Cheers,