Evil Lair Alert!
I’m seeing a huge divergence in two key market correlations. Maybe it’s just a disturbance in the evil force and we’ll have to follow up in a day or two – but it could be a harbinger of a nasty correction in equities.
Either way, Mr. Bigglesworth does not approve of today’s tape – which is why I have no choice but to issue an immediate Code Orange Evil Lair Alert:
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And here’s your culprit – that NLBL on the spoos was busted with some vehemence and it looks like as if we’re pushing toward 1360. Meanwhile copper dropped like a rock and did a dead cat bounce (sorry, Mr. Bigglesworth – I watch my language now) at its own NLSL. Maybe this is the extend of it and copper will continue upward tomorrow. However, if you were long the spoos yesterday or this morning I strongly recommend to take profits now.
BTW, that divergence on the Zero Lite is also not exactly confidence inducing. It’s summer – the tape is prone to whipsaw and this session doesn’t really feel right. Let’s take profits while we can and wait for further instructions.