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Top Of The World
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Top Of The World

by The MoleNovember 16, 2016

The Dow Jones Industrial apparently channeled its inner Tenzing Norgay and managed to climb to new highs at 18900 and all that without the use of an oxygen mask. The S&P and Nasdaq remained at camp IV for now but I have an inkling that they’ll make an attempt to reach the top before we ring in the new year. Clearly very few saw this one coming and the ensuing short squeeze has been a sight to behold.2016-11-16_mcclellan

I’m planing on doing a more comprehensive momo update sometime next week but wanted to share a few select tidbits today. For a bit more context let’s take a peek at our long term NYSE Summation index. In late summer we were all primed and ready to roll over during the traditional sell off season in August/September. All our momo charts were showing us an opening and the only thing missing was for the bulls to make a move. Which happened way too late and with rather flaccid downside momentum.

2016-11-16_nyupv_nuydnv

Our NYSE volume ratio shows us a similar picture. As you can see a lot of bearish momentum was (once again) wasted in sideways mode and the drop below our ~1.13 support line almost exactly marks the final lows. Quite frankly even if we had embarked onto the bearish scenario I don’t think we would have dropped all that far. Clearly there are very few bears left alive in the wild (with ground up market bear claws selling as aphrodisiacs in China) and selling interest has grown increasingly paranoid and nimble over the past few years.

2016-11-16_fxa_fxy

This is an old chart of mine which I had neglected a bit over the past few years. Basically it’s the ETF version of the AUD/JPY against the SPX. Don’t ask me why but the two seem to correlate extremely well and the ratio is often leading the index. As you may have noticed it is pointing up and may soon break a falling diagonal resistance line (connect the blue highs in your mind).

By the way trading along the Zero was a lot of fun yesterday and I wanted to share a recap of the break out pattern with you guys. Note how the signal remained positive through the early gyrations and then actually detached from the Zero mark (blue line in the center). When that happens I usually expect a ramp late in the session which is exactly what we got. I hope that the diagonal I painted just before was of service and that you caught a few handles of the late session burn higher.

The future is now – so don’t bring a knife to a raygun fight. If you are interested in becoming a Zero subscriber then don’t waste time and sign up here. A Zero subscription comes with full access to all Gold posts, so you actually get double the bang for your buck.


About The Author
The Mole
Mole created Evil Speculator amidst the chaos of the financial crisis in early August of 2008. His vision for Evil Speculator is a refuge of reason, hands-on trading knowledge, and inspiration for traders of all ages and stripes. You can follow him and his nefarious schemes at various social media waterholes below.
  • ridingwaves

    Thanks for momo update

  • ridingwaves

    SAEX
    SHIP
    EGLE
    TOPS-

    they are moving again today…

  • Yoda

    Thanks Mole. Re. NG are you still in the trade?

  • Billabong

    I hope you got in early enough to catch the 60-70% move today on those carriers.

  • Billabong

    HG @ LOD.

  • ridingwaves

    DCIX +188%, didn’t have it on the list
    smacked straight into weekly resistance at 18

  • Billabong

    Excellent!

  • ridingwaves

    must have been a hedge fund conference call about this sector….
    at 9AM post election day or something…

  • ridingwaves

    these symbols are going nuts

    TOPS has traded its float 6X already

  • Tomcat

    Why do you have to remind me ;-(

  • ZigZag

    Zero’s a little antsy today, huh?

  • Yoda

    whipsaw Wednesday

  • ridingwaves

    opex unwinding, I can’t imagine how many big houses were leaning wrong way

  • http://evilspeculator.com Sir Mole III
  • http://evilspeculator.com Sir Mole III

    Are you guys behaving?

  • http://evilspeculator.com Sir Mole III

    Indeed – see above.

  • Yoda

    Getting dizzy from those constant gyrations

  • ridingwaves

    for a second gold and oil were flat even for the day, that doesn’t happen often..

  • http://evilspeculator.com Sir Mole III

    Where did all the mojo go?

  • CandleStickEmUpper

    Im long NQ, CL, and HG, scalp trades

  • Ronebadger

    We talk a lot about “participation”…looks like we got it…

  • http://evilspeculator.com Sir Mole III

    crude AND copper – brave…

  • http://evilspeculator.com Sir Mole III

    Seems like they’re playing ping pong today…

  • ridingwaves

    I like crude here…..42CL might be low for rest of year…

  • Mark Shinnick

    Been doing the short miners thing….backed off for time being.

  • http://gerb-reloaded.blogspot.com/ Gold_Gerb
  • Yoda

    tug-of-war between bull and bear bots

  • ridingwaves

    where is Forrest?

    Bio and FIRE taking their lumps today

  • Mark Shinnick

    Yeah…one definition of time: Nature’s way of keeping EVERYTHING from all happening at once.

  • http://evilspeculator.com Sir Mole III

    Two hours and counting – they haven’t missed one ball…

  • Billabong

    Yellen Congressional testimony on Thurs, 10 am EST