It’s Crowded At The Top
Careful grasshopper! It may be lonely at the top of the entrepreneurial food chain, but it’s certainly getting a bit crowded at the top over in equities. Let’s review some of our usual suspects:
My most bullish chart right now – price (tough to argue with – so that’s why I’m putting it up). Still looking supportive and as long as this diagonal holds take anything below with consideration. There are cracks in the marble but thus far the edifice is holding up.
One of my salient ones today – UVOL vs. DVOL and quite obviously the latter outpaces the former by far. I hope I’m not looking at quirky TOS data so please check your own sources and report back here.
NYUD – definitely not supportive of new highs.
NYSE advancing vs. declining issues. The current trend on the signal is down while equities are tirelessly marching up.
Finally, our trusted Zero indicator is showing zero participation today (right hand panel) – completely flatline all day. Based on prior observation (four years + and counting) this does not mean we are about to turn as it may lead to a mighty blow off top.
Once again, I’m not going to argue with price BUT – as soon as the diagonal on the spoos gives way I’m ready to dip into some short positions. Until that happens I bite my time as usual and carefully craft my nefarious plans. We are evil speculators after all
Update on cable – if you were a sub then you probably are short right now. The weekly triple breach (both SMAs and the NLSL) is very positive and let’s see if it holds until Friday at the bell.
EUR/USD – I was out of commission on Monday and missed to report on the touch of the 100-week SMA. But I want you all to be aware that this pair has hit a weekly resistance level. I would be short on a retest (a.k.a. last kiss goodbye) but of course would be equally happy about a break out in the coming weeks. Just not here in Spain at the ATM – I guess you can empathize…
Bonds – the 10-year did observe our diagonal resistance line thus far – despite a little fake out earlier in the session. I’d remain short here with a stop above. The diagonal is falling fast thus we should get resolution in a jiffy. I’d flip for a short if we close above.
We have quite a bit of activity on the commodities and FX side today – so please step into my lair for more setups:
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This entry was posted on Wednesday, January 16th, 2013 at 2:31 pm. Both comments and pings are currently closed.