Market Musings

We now find ourselves deeply embedded in a technical information vacuum, while at the same time we are being bombarded with a veritable smörgåsbord of market rumors, conflicting news, political machinations, and pre-election witch hunts. As a financial blogger and trader this is hell on wheels and I can’t wait for this entire freak show to at least slow down a little post November 8. At least one would hope…

Solid setups are few and far between at the moment but there are a few charts on my watch list I’d like to share. Crude is one as it’s pushing sideways again after breaching the 50 mark. It’s been interesting here as it apparently every time the big 50 is touched it somehow is running out of gas [pun intended]. At this very moment we don’t have a setup but I’d be interested in a long on a drop lower and a short next time it gets near 51.30.

The Ozzie Dollar has reached a fork in the road and I suggest that it takes it [channeling my inner Yogi Berra here]. It’s now touching a pretty solid resistance range on the daily but the weekly is getting more and more wedged in. A short here is possible but I’d prefer a long position on a drop lower, which may turn into a last kiss goodbye setup before it pushes higher and establishes a new LT trend.

The only entry I care to touch today is on the ZB where I see the possibility of a floor pattern on the short term panel. We did touch the lower 100-day BB here yesterday so it may just have a chance. But I won’t deploy more than a 0.5% position here as it’s early days and we are most definitely still in a down trend.

Watch Your Back

Nothing else to report for now. Equities are obviously back in churn mode and I wouldn’t hazard a guess as to how long this game of ping pong will last. My momo update yesterday pretty much spelled it out for you guys: We are lined up for a big correction across the (momo) board but prices aren’t budging. And when something should happen technically and doesn’t then the opposite reaction often takes a lot of people by surprise. So watch your six and don’t get caught with your pants down.