Welcome To The House Of Pain

I’m not going to sugar coat it – the tape across equities has been nasty. I’m getting the distinct feeling that the inside crew is in a foul mood and is now reaching for the cattle prods. That’s right – everyone is getting some this week – seems the only way to win is not to play. Let’s review the trainwreck on the equities side after which we proceed to some actual tradeable setups. Yes, they exist – it’s the ones you guys keep ignoring 😉

So here we are – welcome to the house of pain! They’ve punched it higher and I now blew my second R on a double IP whipsaw (one short and one long). Now we are painting another inside candle as of right now and I normally would be disturbed enough to consider taking this one. However, the VIX is rubbing me the wrong way:

Once again we’ve got the VIX running higher since the open – along with equities. The Mole is not pleased.

And then there’s this – seems 30-day IV is dropping (not gaining – sorry for the hickup on the chart) against 3-month IV. Or 3-month IV is gaining against 1-month IV. Either way it’s suggesting a possible shake out ahead and I don’t like it. So I’m going to give this one a miss – I don’t have to play equities after all – plenty of other goodies around.

Since you regular players are MIA I’m going to make this a freebie. Time to spread the love and bring in some fresh blood it seems. Gold now sitting on top of its 25-day SMA and I love these types of setups – often we are talking last kiss goodbye. Plus we’ve got an inside day candle and that gives us bi-directional entries.

Platinum – same idea but here we’re pinned below the 100-day SMA. Could go either way and I love it. Plus the candle range is small – allowing a nice R size – of course downside is whipsaw risk.

Bonds – back at the 25-day and we are talking IP as well. Great setup near context as the 25-day has been observed in the recent weeks.

EUR/JPY – beautiful IP on top of it 25-day SMA. I think we’ve got a theme today.

NZD/USD – back at the upper diagonal and we’ve got a double inside day candle. Purrfect – the odds are slightly higher on these and once again I love the context.

If you’re a noob and don’t know how to play these candle patterns then look no further than our handy cheat sheet. Or drop a comment via disqus below – we’re happy to sort you out.

It’s not too late – learn how to consistently bank coin without news, drama, and all the 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.

Cheers,