Zombie Tape

Grab your machete and your shotgun – for we’ve got zombie tape! I’ll be short commentary and long charts today as I think the picture here speaks for itself. But first let’s get in the mood for this, let’s soften up those stainless steel rat synapses! Trust me – you’ll need it in a minute:

Okay, I’ll be gentle now and start you off easy – take a peek through my hourly zombie goggles:

That’s an extended version of my NYSE advance/decline volume triplet chart. The green is the UVOL, the red the DVOL ratio, and the pink the ratio (UVOL/DVOL). This is three months worth of the hourly. The blue circle is the past few weeks and the orange circle is most of September. Make sure you aim for the heads at close range!

Now we’re switching to the daily – September ’11 to September ’12. Scary…. Same frames as before.

And here are the past three years – just to give you guys some perspective as we are still painting new highs. Scaaaaarrryyy… is it Halloween already?!

Meanwhile Mr. VIX is descending back into bounce territory. I don’t mind picking up some short term longs but I’m not holding anything equity related for more than a bagel throw.

That’s what I’m talking about – that 100-hour SMA is actually my theme of the day as I’m seeing it all over the place. Only problem is that it shouldn’t be happening on the spoos. Gold, silver, copper, currencies – fine – but not equities, for frell’s sake!

Did you take my crude short entry at the NLSL on crude yesterday evening? I really hope so…. Boooommmmm!!! This is going to leave a mark!

Support coming up here at the 100-day SMA near 90.5.

The weekly panel shows us a NLSL at the very same spot which is good for yet another week. I’d say scale out now and keep a few lottery tickets for a touch of 90.6.

Yes, I got more – the Mole delivers, whether you guys show up for work or not 😉
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Inside day setup on silver – I would also keep an eye on the 100-hour SMA. As I pointed out above – this seems to be the new theme du jour.

Gold – similar story. Obviously short squeezes happen but I am not averse to a short entry if we veer off that gold brick road. Keep moving your stops with that 100-hour SMA if you’re already long. Also good for taking entries obviously. Don’t over think this – just follow the map – this 100-hour SMA has been golden thus far. We milk this cow until she falls over dead.

Natgas – nice bounces at the 100-day SMA. It’s rising so that makes for easy stop management.

Copper – similar story as silver and gold. Short squeezes happen on copper – I learned that the hard way so that you don’t have to. Again, follow that hourly SMA.

USD/CHF trying really heard to paint a floor. Wait for a 100-hour SMA breach. Yes, I know – I sound like a broken record today.

USD/CAD – yet again the 100-h SMA appears to be a good spot to be long. Possible floor pattern on the daily.

Inverse situation on cable – yes, the 100-h may lead us higher. But I would love to see a breach here that takes out the 100-day Bollinger.

EUR/JPY – similar idea. We are inside the BB on the daily and it’s dropping. Let’s see what happens here – I think the 100-hour SMA will lead the way.

And on EUR/AUD I’m mostly interested in a bounce. We are already long that one from last week. May be a nice spot to reload here at the SMA. If you think we’re getting a shake out then put your stop below that SMA – allow for a bit of room to maneuver – she’s makes big turns.

Cheers,