First Blood

Since most of you guys are MIA I’ll make this quick and painless. So after 11 consecutive higher highs it seems like the bulls are going to draw first blood here today. Let’s hope Rambo won’t show up and make a mess of things.

Strangely that’s the same thing that happened to me last time I went to the barber. Anyway, the odds for much continuation lower are at the current time at least rather low. From a purely technical perspective we have quite a few nets hanging below:

On the daily you see what I’m talking about – a whole stacked cluster of NLSLs which will act as temporary support. But heck – I play – there is a bit of event risk over the next 36 hours which can introduce momentary volatility.

Is it me or is Bernanke speaking almost every other week now? Highly annoying and I long for the good old days when earning season and the occasional Middle East blowup was the worst you could expect in terms of news/event/announcement driven volatility. Anyway, keep nimble and don’t get married to your positions.

Talking of which – if you took that inside period entry on BIDU two days ago then I strongly recommend you take profits now! There’s quite a bit of overhead resistance on the horizon and it would be normal to see a pullback after such outliers. But heck – that was a hell of a play! Should have paid for your monthly Gold subscription and then some 😉

Update on the Dollar which keeps taking it on the chin again. Some possible support on the 25-d/100-d SMA combo (1) here. And there’s the 25-w and a weekly NLSL (2) right below.

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Cheers,