Happy Winter Solstice
Here comes the cold and the dark. If you are like me and hate winter with a vengeance then you may be pretty depressed today. But let’s not forget that there’s an upside. Today being the shortest day of the year also means that it only gets better from here, as every new sunrise brings us a few more minutes of daylight. The contrast in daylight hours is actually a lot more pronounced over here in Europe, even in the South of Spain. Back when I was living in Germany I recall the sun setting at half past four and not appearing again until after eight. Of course it’s even worse further up North.
Alright I’m the first one to admit that Southern California has spoiled my tolerance for cold weather and short daylight hours for the remainder of my life. So be warned: No matter where you come from and how impervious you may be to crappy weather – if you ever spend more than a year or two in SoCal it will invariably throw some mental switch in your brain. Going forward you’ll never ever stop bitching about the weather anywhere else in the world. Too hot, too cold, too humid, too cloudy, too dry. Whatever it is, it won’t ever be like SoCal. You’ll turn into that weird guy down the street who’s wearing a winter coat, boots, and gloves as soon as temperatures drop below 65 Fahrenheit 😉
So I’m feeling a tiny bit better today. This cold probably is the nastiest one I’ve had since I was a child and after almost one week of fighting it my body is only slowly starting to recover. My poor wife’s now had it for over one week and as you can imagine thus far it hasn’t been a very merry Christmas season down here at the lair.
Unlike our frail physical disposition there doesn’t appear to be any weakness across equities however. All indices are pushing higher on six cylinders and on the short term panels we are seeing a pretty pronounced diagonal leading the way higher. Shown above is the E-Mini which has remained outside its upper 100-day Bollinger.
Similar picture on the YM which incidentally has not even touched its upper 100-day BB for over a month now. You do not ever want to step in front of that freight train and these are the types of conditions in which mean reversion systems should be turned off.
The TF as well leading higher but apparently being the weakest of the bunch after initially leading the advance during its initial phase.
Meanwhile gold continues to be unable to find a bid. Things are turning actually quite serious here for the goldbugs. Observe how the daily panel is doing the exact inverse of what we have observed on the indices above, as the lower 100-day Bollinger is leading the way lower. There is no telling how low it’ll go, especially given continued strength in the Dollar.
Which brings us to the Euro, another symbol currently on life support…
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