Wait For Weakness

We are seeing continued strength in equities now with buying interest becoming increasingly more assertive. If you are still long from the lows then I suggest you keep a loose trail around 1R – 1.5R away.

I currently elected to focus on the NQ as it seems to offer better daily context at this point in time. The daily and weekly panels show us clear skies until about 4271.25 – where we’ve got a weekly NLBL waiting, remaining active until late next month. The upper 25-day BB won’t offer resistance until about 4300.

On the spoos we are also good to go until about 1960 which marks daily resistance. The weekly panel shows us converging 25/100 SMAs near 1980. And not shown on this panel is the 25-month SMA which currently is in the process of rolling over near 1970.

A Cunning Plan

Which brings me to a cunning plan I have devised to take full advantage of the current advance in equities:

1. Do nothing.
2. Then do even less.
3. Go back to 1.

That about covers it. You see timing as always is everything, and lacking any new information in the midst of medium term corrections across the board our modus operandi should be one of inactivity. The game here now is to wait for weakness, most optimally occurring near a technical inflection point.

Gold is technically sitting at the knife’s edge here and I’ve put in a binary campaign which currently has me short but flipping for a long position near 1212. Let’s see how that one goes.

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Update on the ThinkOrSwim Issue

After wasting hours yesterday exchanging a dozen useless emails with TDA support I stayed up until after 2:00am last night, poring over my scripts, to get to the bottom of what’s going on.  Apparently TOS has introduced some strange bug that effectively breaks some scripts – it has to do with at least one of the internal built-in calls they provide. I sent them a very simple test script to demonstrate the problem which they have passed on to their super nerds. TOS apparently have received a large number of complaints from a number of irate script authors and are now working to deploy a fix this weekend. Hopefully this will address the current issue – ya se verá.

In the interim I am tailing the ThinkOrSwim log and am keeping a close eye on the indicator. I certainly hope that the Zero won’t crash again this week but I cannot promise it as application related bugs are outside of my control. I did port the Zero to NinjaTrader7 but would have to add a bit more code to the script like the Mole reversal signals for example. There is a good chance that TOS will see the errors of their ways and either roll back this weekend or deploy a non-buggy version. So my current plan is to not waste more time and wait for that to happen – especially since it’s already Thursday.

FWIW – the Zero has been running without any problems since late 2008 – that’s over 7 years of faithful service. It’s clearly not me who broke the script and I don’t see any glaring bugs either. So I humbly ask all you Zero subs for your patience this week while things get sorted out. I am working hard in collaboration with the TDA ‘support team’ to resolve the issue 😉