Time To Strike The Iron

I intentionally did not post yesterday as there was nothing to be said until after the first wave of volatility had washed over the market. We saw significant moves across the board but in particular on the equities, euro, and precious metals side. Although the reversals were masterful orchestrated they do not signify a return to the old modus operandi. Things have changed.

I am looking down now and have already taken out a short position near 2070 this morning. My stop is near the 2075 mark where I would consider flipping for a long IF (and only IF) the Zero indicator suggests clear and present bullish mojo. By the way the best odds for a bounce here is near 2064.5 – long positions there are a possibility if you can catch it.

Note how participation on the way up was lacking as evidenced by a minimal signal on the Zero Lite. I don’t see any bullish mojo here – just yet at least. If things change after the open I’ll be sure to mention it here.

Pay Attention Now

This is a brilliant binary entry opportunity with only a few handles separating a bullish from a bearish medium term scenario. What happens here today is very important. If we just flounder and hang around at these level then I would postpone final judgment until Monday. But any directional move today will most likely translate into next week. Our line of scrimmage here is around ES 2073 – watch it like a hawk.

Update 1

I just took profits near 2064.50 and have swapped for a a long position now. My evil plan is to hold long until a breach of 2064.25 – after that I’m short again. That however is only a short term play – medium term I am bearish until a breach of ES 2075.

Update 2 @ 10:40am EDT

The spoos are at 2057 and I’m moving my stop to > 2070. So far so good…

However I can’t shake this nagging feeling that this is a trap… participation is NULL here…