Volatility Heading Our Way

Honestly, I have no idea how we made it through this summer largely unscathed (at least thus far), and -assuming you played along our setups – even managed to accumulate some more ill-gotten (and very politically incorrect) gains. A bit of luck didn’t hurt of course but for the record: we truly worked our butts off in order to squeeze whatever edge we could find out of an impossibly volatile and sometimes erratic market.

Unfortunately things are about to get a bit more messy. As you can glean from our event roster the remainder of this week is going to get dicy. Tomorrow we’ve got the FOMC minutes, followed by  the ECB monetary announcement on Thursday. And to just to mix things up a bit more we’ve got news coming out of this year’s Jackson Hole symposium every single day starting tomorrow.

Not surprisingly the E-Mini advance (if you can call it that) is already starting to slow down, which has flagged an RV floor signal on my DarthMole indicator. I talked about that one yesterday, and if you missed it I recommend you go and catch up with that post.

So I’m going to start tightening down the trails on my campaigns ahead of time. The E-Mini is now well over 1R in the plus and I advanced my stop to about 0.9R. It’s looking pretty good here but momentum continues to be lacking, which is disappointing and given the wrong news or social media clickbait over the coming days may produce yet another frustrating leg lower.

Much to my chagrin my EUR/USD campaign is already 1R in the plus* and I’ve advanced my stop to break/even here. This looks like a bonafide breakout attempt in anticipation of some dovish announcements by ECB members.

Otherwise I’m not going to bother with accumulating much more exposure this week unless I see something interesting in some of the more exotic futures contracts, e.g. grains, energy, or bonds.

I’ve got one more chart for my intrepid subs, please step into my well air-conditioned lair:

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* I earn in USD but live in Europe 😉