Skittish Market? Stop Watching It. 3 Bullish Setups Fired on Friday.

Well folks, it’s a new day and a new dawn.

*Correction: in an earlier edition Iraq was carpet-bombed. This has been withdrawn. We regret any inconvenience caused to Iraq.

An attempted TACO trade maneuver was quashed over the weekend as El Presidente Trump’oh declared an immediate carpet bombing of Iraq again and walked it back 45 minutes later.
This man is dangerous!

We asked the S&P how it felt about the 45 minutes. “Which 45 minutes?”

Despite that, the markets survived the overnight open with a little wobble and then mostly positive overnight.

The VIX is 3 espressos in, vibrating in the doorway, and still hasn’t made it through 20.

It remains highly caffeinated but can’t quite nudge past the 20 level, which I’m OK with.

Market Snapshot

• SPX: Holding the range lows we looked at last week. Fired a bullish setup on the daily chart on Friday.

• NazQuack: Holding the range lows we looked at last week, same as the SnP.

• Uncle Dow: Fired off a bullish setup on the daily chart on Friday.

• VIX: Highly caffeinated, can’t quite nudge past 20.

• CL: Performing beautifully again, almost at the big bull target at 104.50.

• BTC: At the descending channel lows again.

SPX – This ‘aint my first cat wrangling rodeo.

The SnP is on the SPY chart rather than SPX 30 mins for a change, as I’m playing around with some new toys. One thing I was asked in the community over the weekend was how do you battle this skittish market behavior? As we know, the intraday moves have been wildly swinging back and forth, making some of the strategies we trade tricky to work with, and if you don’t have the time to keep a finger on the pulse due to life and other commitments, what’s the solution?

There are a few choices.

1. Trade through. We know from backtesting that all strategies have periods of lower or underperformance, and the hard part is to trade through them in real time, whereas it’s just a little squiggle on the curve when you look at historical data.

2. Step up the timeframes.

Most of the time it’s choice 1 for me, and as the saying goes, this ‘aint my first cat wrangling rodeo¹ and things do get better with this or any other strategy you care to look at. Right now most strategies will be seeing this general fuckery due to market conditions.

¹ Annual Event. No cat has yet been wrangled. Entries remain open.

Choice 2, go up a timeframe, as you will see less noise. But with, say, the Premium Popper, it’s an intraday strategy which trades the open, and as such not a choice. Anyway, going up a timeframe to avoid the noise is still doable, and in my case I’m tinkering with a new strategy.

Something I tend to double down on when the markets are dicking me around. It allows me to hone existing strategies with the current market experiences in mind, or just press the accelerator on my R&D.

As it turns out, a little fusion of several factors and reasons led me to this new, possibly updated version of the Tag n Turn. Not decided on a name for it yet. Primarily I was looking for a short term swing system that my members and me could look at at the end of the day, without having to watch the screens or wait for an intraday setup as we do with the current Tag n Turn setup on the 30 min charts.

It does use the daily swings and looks for those market extremes which we see right now, and aims to make decisions on the daily chart, which is something the community was wanting as well as myself.

Looking at the daily chart with the new setup, we can see there is a nice little indication with a deep dip buying opportunity, and overnight the moves are already pushing higher. This setup can profit in 3 to 5 days and up to 9 days on average. I’m defaulting to 9 days while I feel out the strategy in real time with options.

Friday saw the SnP, the Dow and Bitcoin fire off bullish setups on the daily chart, thus avoiding the yoyo’ing intraday. Trade on, come back tomorrow, or in a few days.

.

CL – Performing beautifully again, as usual.

Crude oil is performing beautifully again, as usual. Almost at the big bull target at 104.50.

BTC – Proving another turn off the range lows.

Bitcoin is at the descending channel lows again, proving another turn off the range lows. Interestingly, the new strategy I’m tinkering with also fired off a bullish entry setup on the daily chart, and while it’s unrelated, it is nice to see two strategy setups confirm each other.

Two setups, one turn.

Trade well,

T2 Markets

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