Gravity Restored

It seems that gravity has been temporarily restored on all decks as evidenced by a continued sell of on the equity side. Buyers are far and few between as the Fed’s money printing spigot has been temporarily dried up. Either that or there really is be some truth in that Mole Put – again, I would be happy to travel all over the world if you guys pay for it. Yes, I can see it now: Be alerted to Mole’s travel plans and profit while you watch the market suffer a healthy dose of jetlag – now for only $99 per month! I may have missed my true calling!

With a heavy heart I must say goodbye to Anza Borrego today as I’m heading to San Diego for a four day martial arts seminar. A small consolation is the 3.5 hour drive through the desert which as you can tell from this shot taken earlier today should make for some dramatic photo opportunities.

On the equities front we are now heading for the big volume hole which must be seen as a major line in the sand for the bulls. Should we slip below it then I am not sure if  1400 remains safe.

Although it’s not weekend yet the point & figure on the SPX had to be posted today as we are seeing dramatic changes. On the 8th we actually painted a high pole reversal warning and today we officially below support and have now flipped to a bearish price objective of 1395.

On the Net-Lines chart I’m seeing two levels of support. Very soft via the lower 25-day BB (if the bulls catch a break) and more solid if we drop below the volume hole and drop toward 1390 where the 100-day SMA lurks right now.

Copper also looking pretty bearish now as we dropped through both the SMA and 25-day SMA. If you are short from yesterday then use the 100-h SMA as your line in the sand.

Coffee gave us two entries and now it’s off the races. Nothing more to be said – my condolences if you snoozed on that one 😉

Soybeans also converting to the dark side – we got two entry opportunities and I have been pimping it to my subs. I usually love to see the latter type which I call the ‘Last Kiss Goodbye’ (LKGB). Nothing to do here right now – let ‘er ride.

Currencies – EUR/CAD is holding support thus far which is what I suggested yesterday. Truth be told we are not out of the woods just yet but it’s a good beginning. Put your stop below the SMA and forget about it for a while.

NZD/USD – another nice entry near the SMA and then we got a little shake out via the NLBL which served as our line in the sand. Thus far it’s holding up nicely and I’m also happy to see that the 100-hour is serving us resistance (and short term entry opportunity) as suggested.

As I keep saying – watch those 100-hour SMAs – they seem to be golden recently. USD/CAD is trying to escape that dropping SMA for the second time. Good entry at the 100-hour if you caught it.

More goodies for the subs – actually more than I bargained for as I have to hit the road, so let me be quick:
[amprotect=nonmember] More charts and non-biased commentary below for anyone donning a secret decoder ring. If you are interested in becoming a Gold member then don’t waste time and sign up here. And if you are a Zero or Geronimo subscriber it includes access to all Gold posts, so you actually get double the bang for your buck.
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Crude – testing the 25-day SMA. Great spot to be short with little risk. You know the drill – if we breach higher have no compunction to swap your allegiance to the bulls.

Gold – still riding the SMA and slowing which is positive. I see congestion on the hourly and a breach of the hourly SMA would probably lead us higher after a little correction.

AUD/USD bumping against a NLBL plus we are at the 100-day SMA. Great spot to be short or long if we breach. I would love to see a drop through that hourly but let’s not get ahead of ourselves.

Here’s the monthly view which you should keep in mind when taking daily positions. We remain land locked between two opposing Net-Lines less than 40 pips apart. A breach in either direction should bring us acceleration.

Being rushed I typed ‘resistance’ all over that chart when I meant support – sorry about that. In any case EUR/AUD looking like a good long at the NLSL – assuming of course she can hold it.

Looks like I had the same brain fart when looking at the EUR/JPY – support touch and I want to be long until being proven wrong.

Cable approaching the 25-day BB – could act as support but I would only risk a small position.

That’s it – I really have to run now as I need to check out of my hotel at noon. FYI – tomorrow and Friday I will be posting in the evening as my seminar starts at 10:00am in the morning. I hope the regulars can keep things interesting while I’m paying good money to get my butt bounced all over the matts.

Cheers,