U-Turn

Over the past two sessions almost every market vertical suddenly turned on a dime, the one exception of course being equities as downside corrections have effectively been illegal since November of last year. You’d think retail traders would love it but it’s become increasingly clear that the pool continues to shrink, the only exception perhaps being the stubborn buy and hold brigade.

Which just for the record I have absolutely no issues with, it’s a method of investing that has had obvious merits during what history books may one day call the big bull market of the 21st century. But when I saw a renowned market analyst proudly proclaim that the consequence of extensive quantitative easing had resulted in more positive investor behavior I couldn’t help but roll my eyes at such a manipulative attempt of misinterpreting what has clearly been a direct consequence of moral hazard due to questionable and at best experimental Federal Reserve policy.

Just look at that Zero signal on the right panel – we’re seeing minimal participation and at this point one wonders who/what exactly is pushing this tape higher. If you’re long here and buying then please raise your hand in the comment section. <crickets>

Alright, let’s review the ‘damage’ – I’m putting it in quotes as we of course got out with ample profits due to well placed trailing stops across all campaigns. NZD/USD is out at 0.75R – a bit earlier than anticipated but I’m already drooling over the new formation on the daily panel, which I think will soon bestow us with another entry opportunity (depending on what the Dollar does of course)

AUD/USD also got hammered but we managed to escape with 0.75R as well. Nicely played!

Not surprisingly the USD/JPY is officially on fire and I’m moving my stop below that NLSL on the hourly panel which also seems to line up nicely with a previous congestion range. That locks in about 0.8R which ain’t bad for a day’s work.

USD/CAD for some reason seems to be running out of mojo which is a shame as I thought we’d see a blast higher judging by its previous ramp. The diagonal I painted on the short term panel looks supportive, so let’s see if it can drag us out of the mud. For now however we’re hanging on by the skin of our teeth as that dip lower almost stopped us out.

I actually got very lucky on crude as I was exiting yesterday and wait for the roll-over. Which saved me from what would probably have been a less favorable stop out. However at this point I don’t see an ideal entry opportunity and I hope it won’t run off without me.

10-year bond futures – also out at 1.25R – this one looked so promising but at this point it seems that it may actually drip below the rising diagonal I painted (how rude!) and continue lower. Back on our watch list for now.

Soybeans netted us another 1.25R plus minus on where you entered. I’m not too sad about this one either as the roll-over is approaching.

I only have one promising entry and I’ll just throw it to the leeches. Sugar isn’t exactly a popular contract but I’ve watched its daily BB compress to the max over the past few weeks. Which leads me to think that the current floor formation may just have a chance of transitioning into the short squeeze of hell. Let’s hope that it will do just that as I’m long with a stop below 13.74.

The future is now – so don’t bring a knife to a raygun fight. If you are interested in becoming a full subscriber then don’t waste time and sign up here. FYI – a Zero subscription comes with full access to all Gold posts, so you actually get double the bang for your buck.