Post Market Musings
Now this was a fun day – although bananaben would probably disagree. Sorry buddy!! You’ll snap back from this!
Well, to the bears I now give the same advice I would give to that 40 year old virgin. Dude, you better close the deal this time! 😉
This is why – we closed far outside the 2.0 BB on Mr. VIX. But the worse news is that the LOWER border of that BB is now extending a lot further down. Good luck seeing a push below 14 anytime soon – sheeesh. The bears better make this one work, ladies and leeches…
More short term – check out the divergence we saw on the Zero Lite:
Yes, we prefer to see those intra-day and a lot can happen overnight. However, it’s reasonable to assume that Ben and cronies may hold some kind of emergency session overnight and that we might see some push back tomorrow morning. Now that said – more longer term it’s interesting that we reversed right here and now:
Plenty of charts below for subscribers – Evil Speculator Gold will set you back a whopping 29 bucks – less than you handed your Starbucks barista this week 😉
Oooh – she looks like she’s going to hurt you if you don’t know the difference between a Venti and a Grande – I like her….
That’s right – we bounced right off the 61.8% fib line.
We also bounced off the 78.6% fib line on the COMPQ – coincidence I think not!
I’m sure you are all familiar with the concept of ATR – Average True Range. Look how we seem to push up just before we paint a meaningful retracement. And that divergence is getting stronger each time around. It’s another expression of increasing volatility and that is something we want to see ahead of a retracement.
BUT – will it happen tomorrow? Not sure – the Zero Lite is telling me that there is a good chance for a snap back, which hopefully will be manhandled by the bears and that within a day or two. If not – well, then all we’ll see is yet another buying opportunity. I for one am sick of seeing green/white candles.
UPDATE 8:40pm EDT: Bonus chart!
Copper futures are painting a little divergence. It’s not a massive one, granted but considering the big picture it’s yet another clue.
Have fun storming the castle!