Bearely Legal

The bulls didn’t waste any time this morning and wielded the iron while it was hot – props to them as this is the way to play it – run those stops and squeeze the weak hands while you can. Now the question is whether or not they can keep it up. Which will be the fork in the road for Blue and Green – the former of which at this point is now ‘bearely legal’ (trademark pending – hehehehee) and the latter seemingly lining up with my short term indicators.

Let me share some of short term observations:

Copper futures have been a great guide lately and I keep looking at them on a daily basis. Alright, this is not a short term chart, granted, but I do see a clear divergence in intensity on this latest leg up. But, copper futures are still pointing to the sky and I am sure that equities will exploit that as long as possible.

That’s a nice chart – as you can see equities in blue completely overshot the move up on the EUR/JPY. And what is that? A breach through th 80% mark? Not a guarantee of downside but it’s a possibility, even if it’s only short term. The more interesting observation is how little the EUR/JPY pushed up while clawing its way back into short term oversold conditions. Not much strength there – and it had the benefit of central banks in the past day or two.

Which brings me to the three piggies – Soylent Blue looks ‘bearely legal’ at this point, quite frankly that c wave is way too long to count the whole thing as an a-b-c. So, chances are Soylent Green is in the works and temporary EUR/JPY weakness may lead to a b-wave down, which would be followed by another rally up, most likely ending Friday or Monday.

Or, something else is going on and we whipsaw around for another week or two – the Soylent Orange scenario does not have to be straight up – we could get some kind of double zig-zag or triangle, you never know. We are long term oversold after all and there may be seller exhaustion which has gotten us to the point where we need a week or two of ‘recharging the batteries’.

Alright, all I got for now. One more comment – some of you may have noticed that I haven’t posted my symbols last week. Reason being is that I didn’t feel like posting long symbols when we were at a possible bearish inflection point and of course bearish symbols were kind of shot to hell already. But that situation may be changing right now and if we hold the tape for another day or so then I will look for a few long symbols which would be trades good for few days.

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Cheers,

Mole