MMMR Alert

If you took that short trade on the spoos I was suggesting Sunday night then you should be looking at some nice green in your account as you are reading this. There was a tepid attempt to push through that sonic wall during the long weekend but without a decent volume profile above 1370 we won’t seeing any smug bulls wearing SPX 1400 (or Dow 14,000) hats  – for now at least.

My MMMR indicators have now pushed into possible buying exhaustion territory. they don’t always hit it on the nose but often enough to warrant caution at this point. Of course depending on the conclusion of today’s session those readings may change.

Here’s MMMR2 – as you can see this one sometimes strikes a bit early, which is why I look at several to produce a wider context.

The MMMR Volatility ratio also suggests the possibility of at least a few days of softness here. If it continues to run higher I will let you guys know as that usually suggests continuation. I do like how that BB bubble is starting to plot sideways however and if we want to see a reversal then this signal must be valid. If it is NOT then the bubble will continue to swing up again and thus open the door for a continuation into SPX 1400 or perhaps higher.

I am happy to report that our sugar trade is doing extremely well at this point and we are well on our way to our 27.0 target.

Crude is also making us smile now and I think we should be good into ~108.00.

The Euro/Yen also decided to follow our script and I’m holding this puppy into ~108.00 – hey, isn’t that a nice coincidence? Come to think – those two charts do resemble each other… mmmmh..

A few setups below for my subs – please step into my dusty lair:

Ole’ bucky is now at an inflection point – well, it has been clinging to it stubbornly for a little while. A push higher may produce some undesired head wind for equity bulls. I’d be long here until we breach through that 100-day SMA.

The Aussie/Dollar should be a good long here – UNTIL we breach 1064, then it’s becoming a good short trade into 1.04ish.

Not a great setup on the Euro/Swiss but I do like the sideways pattern here combined with a swarm of Net-Lines. IF – and only IF it can manage to push higher here it would turn into a kick ass long trade. I would not take this one right here but definitely keep an eye on it. You can be long here if you have patience but set a stop right below that 1.2061 NLSL for easy/cheap protection.

Things are unfolding fast now on the equities side and I wanted to share my short term perspective on the spoos. Bottom line is that 1355 needs to hold or we most likely slide into 1334, the lower boundary of the hourly BB. That also just so happens to be where the current daily NLSL and the 25-day SMA meet – so be long if we get there and short as soon as we breach through it. Frankly – I am wishing for the latter – but what I want to happen and what I’ll get are usually two separate pair of shoes.

Cheers,