Starting it off.

TL game in the Euro was a real classic.

Yes it was.

Originally posted by MarcinO

TL game in the Euro was a real classic.

Based on this the 10-year yield has moved further down, and is around 1870 based on this chart, if my work is right (I'm still hammering out how to get good charts for this). So either the yield starts up, or the ES will keep moving down so they converge. It's not something that has to happen right away (and no 'rules' say it ever has to happen). That would line up with a sweep of the cluster of lows (I see seven of them) at that level. I'd think it might like that. But, there is lot in the way... Fun stuff either way, and nice trading action. All I want is movement.

Originally posted by jimkane

And here we go again with what I think may be the best opportunity out there, the convergence trade in these two. Read the article for additional charts on this.

http://www.zerohedge.com/news/2014-10-20/crocodile-jaws-spring-open-again-preparing-bite

Strong response after the open to the very top of the monster area. I'm hoping it's a bounce and roll, but the strength is remarkable. I'm not sure if they are doing this as the ultimate sucker trap, or if it's genuine. I'm 70/30 for the latter right now.

Another pump. Wow.

A little more and it will be ten points off the low in barely a blink.

Anyway, this is a big spot right here, so let's see.

EXP ABCD with TL fakeout?

Nice panic move. It can be done in here.

Yawn. Just checking things, then back to bed. Smokin' up nicely. The monster area held fantastically, and it's up 20.75 points by my data off that. Nice little setup. Like I said in Trailing Stops "Trailing stops are so good they should be illegal". The only thing I might add is 'Automated overnight trailing stops are so good they should be illegal'.

Recall the areas I mentioned earlier today. I don't like the long side too much, but ya gotta love this market, the movement is fantastic, and as roofer used to say, you just hold your nose and take those long trades.

Anyway, the ES did something it usually doesn't do, and that's make any kind of move in the Friday after close mini session. This time it kept moving up, set a new high for the entire move, and closed almost at the high tick. It is now fully at the monster weekly backtest line. If this is a bear market, it should roll off this, and roll hard. There is a key area above, built from the immediate price action, and that comes in at 76-87, with a grouping of key Fibs at 94.00-95.50. I could see it hitting the lower end of the area, maybe a little above the lower end, and still be respecting the key TL backtest, but not much more.

Still, does it even seem remotely feasible that this is going to dump to significant new lows from here? The only hope I see at all is that not only do all pundits and analysts say no, it's completely and utterly an impossibility, most readers in here, I believe, are also saying no out loud right now. And that's not meant as a slight to the readers in here, who are among the most highly informed out there, I feel, it's more meant to imply just how good they are at sucking people in. We'll see. I don't really care, from a trading standpoint, what these maniacs do with it. So, that's what I'm working with as we reach arguably the most critical juncture perhaps in trading history.