I don’t have too much to say at this point – except that copper is making me a bit nervous:
As you know those divergences usually end in tears. But as long as HG can remain above 4.2 we should be okay – if it drops through that mark equities may get hit in the process. This is the only fly in the bullish ointment I see right now – but it’s usually one I take very seriously. I also think that we may be due for a little reversal in equities by the end of this week – let’s see how high they can push it until then.
Alright, here is one setup on the FX side that sprung out at me: [amprotect=nonmember] FX setup and commentary [...]
As so many times before in the past two years the inflationists won the game:
Every once in a while I put this chart up for everyone to keep an appropriate perspective. In gold the SPX as it’s trading – in purple the SPX as measured in gold (yes, I should swap those colors next time). In the end what you see in your equities portfolio is nothing but an illusion.
That’s right – I’m hip! I’m with it! Down with the man!
Alright, let me snap my lower back into place as it’s time for my long overdue trend chart roll call: [amprotect=nonmember] Charts and commentary below for anyone donning a secret decoder [...]
Absolutely no participation today – basically a continuation of a phenomenon we saw on Friday. And clearly evidenced by the Zero Lite:
It really seems like they ramped this thing across SPX 1300, ran a few stops and then walked away to spend a week in the Hamptons. The drop in the last hour was of no surprise to me, when there is zero participation nobody wants to be caught holding the bag. I would not want to be long here right now as it’s very much possible that what we saw last week was nothing but distribution (i.e. a short squeeze and selling into strength). If the longs want to keep their coveted 1300 mark they’ll have to do better than this. [...]
You have been asking – you have been begging – and fortunately a few of you resorted to bribing. I myself of course always wanted a Zero indicator for the FX market but knowing what’s feeding the Zero for the S&P the looming challenges on the coding side appeared to be rather daunting. Not only did I have to figure out a way to produce a similar style market oscillator for currency pairs – I also had to recreate several market metrics that are basically unknown in the Forex world. So knowing all that I realized that my only chance to slay the beast was to wait for an undisturbed stretch of time during which I could sit down and focus on coding for a few [...]