Tumultuous Tuesday Wrap Up

Plenty of action on the spoos today. Although we didn’t get a spike higher at the end the sell off was starting to look a bit shot out toward the end. Let’s review all the gyrations – I did my best to keep pace:

To address the obligatory Captain Obvious – yes, we had some busted Mole signals today. Swung a little but then reversed right away. Can’t be avoided, there is no way to fine tune it to account for all types of conditions. We have clear days and we have days when we get sone false positives. Fortunately the clear days seem to outweigh the mixed ones in the past few months 😉

I usually set my stop pretty nearby, if I get taken out and the tape turns a candle or two later I may jump back in. But in general the Mole is a scalp signal – you don’t think, you act and take profits after a handle or two – or you get stopped out. There are probably other ways of using the signal and your mileage may vary. I’ll spend the rest of the year testing the hell out of it once it’s implemented on NinjaTrader, meaning different settings, chart intervals, stops, targets, the works – I’m all over this one as promised.

About the session – frankly more sell off than we had anticipated after yesterday’s bear wedgie. But the writing was on the wall at the morning briefing and I trust none of you got caught on the wrong side of the tape today. There is more whipsaw mid session which tapers out a little at the end. More zesty then the past few days and I stick with staying cautious down here as this sell off is getting a bit long in the tooth. We painted step one into a VIX buy signal at the close and thus the bears are on notice now.

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Cheers,