For the past quarter equities in particular have entered a market phase eerily reminiscent of the mind numbing churn we had to endure for most of 2016. Meaning a lack of direction, high intra-day volatility, and sudden directional spurts which are either news driven or the result of FOMC or ECB deliberations. Obviously the supposed phasing out of quantitive easing already has and will increasingly affect the effervescence of what we all most likely will remember as a one-in-a-generation bull run.
As of this morning all remains well on the Western Front. Bearish positions have been completely decimated over the past three sessions in what must have been the most violent bear trap of this year. Any surviving grizzlies are now being pursued and picked up one by one, thwarting any desperate attempts to reach safety. Public lashings and indiscriminate pillaging will continue until moral improves.
Happy Monday everyone. I’ve got my eyes on gold this morning which touched hourly support on Friday and has been pushing sideways since the Sunday open. The daily panel is looking extremely tantalizing as gold futures have been painting a sideways pennant with a diagonal support line which is currently backed up by a stack of daily Net-Line Buy Levels.
We are literally hanging by a thread here as the bulls have been able to defend the last hurdle separating the winter of tears from the spring the bears. The 1900 mark may look innocuous enough but if we close below it today then the odds of more downside momentum next increase by a large margin.
I’m sensing quite a bit of exhaustion in the comment section and I can’t really blame you guys. Not only did we have to suffer through almost an entire year of sideways churn, but now that things are more directional we still have to put up with an increasing amount of intra-day volatility. Well, better get used to it, because conditions like these is going to be [...]