Everything Must Go!

I am not even going to justify what just happened with a comment as I am supposed to keep things family friendly around here. If you caught yesterday’s post then you already pretty much know where I’m coming from. And the only thing left to say would be ‘see, I told ya so’. And I hate it when people say that, so let’s move on and try to be productive. To that end I have dug up a few interesting charts – not much in terms of setups but we approaching a few chalk lines.

The first one, courtesy of Señor Bernanke, is the spoos which went from limbo to resistance in 30 seconds flat. That unfortunately is the only technical resistance I see on the horizon right now. [UPDATE – we are already at 1455 and thus far resistance has been breached.] Don’t get me wrong – I don’t care if the tape goes up or down – I have no dog in this fight. But I do care about technical setups and that’s all she wrote for the time being, at least on the resistance front. There are no volume holes anywhere near either. As a matter of fact the volume profile is looking like the Gobi desert and we are officially trading outside the usual time/space continuum.

Even more interesting is my NYSE volume ratios panel. I pointed out a very low range a few days ago and was startled to see that this very phenomenon has continued all week. And if you think this looks a bit abnormal then let me show you a bit more context:

Here’s the 90 day 1-hour version – I have once again circled the last five sessions. So, given where we are trading I cannot help but wonder if the patient is dead and nobody told him. Either way it’s just a matter of time when rigor mortis is going to set in here. If anyone has different data then please send it over.

As expected ole’ bucky remains to be a sucker for punishment. We have now reached the lower 100-day BB and if dip buyers don’t put up a bit here then I may as well ask mys subs to start paying me with Monopoli money. The only currency worse off these days is the Iranian rial which has been dropping by over 5% for several days now.

Long positions on the Dollar however may be a bit premature at this point as the EUR/USD (and other pertinent pairs) are still completing their advance. I think 1.30 remains my current target and after our recent entry I am holding a few tickets all the way.

The one possible setup I managed to dig up today is soybeans which jumped higher yesterday only to hit the wall at its brand spanking new NLBL. We are still chewing on that one today but I think there’s a possibility it’ll breach. Either way – I’m using the NLBL as my long/short inflection point – right now I’m long with a stop below. Happy to flip it if it drops below.

That’s all for today. Keep it frosty and let’s continue to focus on the charts.

Cheers,