The most bullish scenario for us is for the market to flat-line and base near the 200SMA and then break through which is exactly what has been missing from previous break-out levels is the base — we’ve approached it every time from exhausted V -moves. Churn baby churn, indeed.
On the bearish side of the argument, the 200sma is a wall until it isn’t, the Euro ($6E_F ) acts like death, and silver/gold can’t find any traction.
The recent randomness of news/rumors has diminished the edge for our type of trading strategy and as we’ve posted on the stream — we’ve pulled back from being active in this tape. We’re ok with giving back on trades that simply did not work, but we’re not ok with getting chopped up in a tape that offers no good set-ups for our strategy. All that being said, things can change in a heartbeat and it’s still important to stay involved and watch price-action, looking for hints of change.
