Discretionary Trading
Now Reading
Too Many Damn Setups
297

Too Many Damn Setups

Too Many Damn Setups

by The MoleFebruary 2, 2016

I’m having way too much fun this morning, which accounts for my somewhat belated post. There literally seem to be juicy setups crawling out of the woodwork and I just kept adding new ones while reducing exposure on others in order to reduce correlation risk. So without further ado let’s jump right in:

2016-02-02_spoos

Equities continue to be a pain in the ass across the board and I’m not going to devote much time here. The daily panel is pretty clear of course as we’re in the midst of a medium term correction. Initially I didn’t give that 25-day SMA much credence but it seems like it is being observed – that’s pretty bad news for the bulls.

2016-02-02_volatility

What continues to fascinate is the volatility profile. We should be slowly dropping here but the signal has been stubbornly pushing sideways. We did see that back in September as well and what I’m looking for is for the signal to start dropping while we produce new highs. NO WAY I’m getting involved right here. Not because I don’t think that we could drop straight down from here – absolutely we could. But the potential to get chopped to pieces is simply too great and I have to wait for a situation where I see the odds shifting in my favor.

2016-02-02_groundhogday

Besides, Punxsutawney Phil didn’t see his shadow which means spring is early and buying interest should emerge here shortly. Yes, I’m kidding of course – wait for the tape to cast its own shadow.

2016-02-02_USDCAD

Alright, let’s get to the goods. USD/CAD – snagged a small short position here. However it’s possible that it’s establishing a base and if I get stopped out I’ll wait for a drop and retest and then go long.

2016-02-02_EURUSD

EUR/USD – my old nemesis is producing a pretty nice pennant and I better head to the ATM today. That said – I’m looking for a short position as we may just do one more round trip inside that triangle.

2016-02-02_ZW

Wheat – want to be long on a drop to around 472.5. Whether I get it is another story – she’s a mover.

2016-02-02_ZS

Soybeans – yeah, I know – a Hail Mary entry which I probably won’t snag. But given all that volatility I thought it couldn’t hurt.

But my favorite Forex crosses are courtesy of Mr. Kuroda today and I’m keeping them for my intrepid subs. So grab your secret decoder ring and join me in the lair:

evil_separator

It's not too late - learn how to consistently trade without worrying about the news, the clickbait, the daily drama and 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.

Please login or subscribe here to see the remainder of this post.

That ought to keep you guys entertained for a while. By the way I was horrified by the participation here yesterday. Did I miss some exotic holiday or what’s going on? Back to work you lazy buggers!

Sign up here to receive my FREE early morning briefing:

About The Author
The Mole
Mole created Evil Speculator amidst the chaos of the financial crisis in early August of 2008. His vision for Evil Speculator is a refuge of reason, hands-on trading knowledge, and inspiration for traders of all ages and stripes. You can follow him and his nefarious schemes at the usual social media waterholes.
Enjoyed this post? Consider a small donation to keep those evil deeds coming!

BTC: 1MwMJifeBU3YziDoLLu8S54Vg4cbnJxvpL
BCH: qqxflhnr0jcfj4nejw75klmpcsfsp68exukcr0a29e
ETH: 0x9D0824b9553346df7EFB6B76DBAd1E2763bE6Ef1
LTC: LUuoD6sDWgbqSgnpo5hceYPnTD9MAvxi6c
PayPal: https://paypal.me/evilspeculator