Intra-Day Update: Crossing the Rubicon

UPDATE 10:44am EST: I think most of us are impatiently awaiting the moment when we finally break out of that 885 – 920 channel we’ve been sitting in for the last three days. I sincerely hope I don’t have to wait until after Christmas. Well, something’s oughta break somewhere and this is why:

The Dollar is nearing an important support line – if it breaches that it will have a huge impact on currencies and commodities. Damn, I can’t even read charts properly today – this thing had dropped so much I didn’t even see it on the hourly!!! LOL 🙂 Anyway, this is pretty significant and it’s possible we are looking at the beginning of a major slide in the Dollar.

BTW, did you guys hear about the Ruble being devalued in larger incements? Russians are bulking up on jewelry and gold.

Oh, and in case you missed it while drooling in front of the Zero indicator: Yesterday, the 3-month U.S. T-bill yield turned negative intra-day, meaning that buyers were willing to take a loss to purchase ultra-safe T-bills. Strange how that is in crass contrast to what equities are doing. I always said that bond traders are a lot sharper than their equity trading mouth breathing ass scratching brethren.

UPDATE 11:11am EST: Something is definitely moving out there and it’s not in my pants:

Banks are taking it up the rear today – maybe the BKX is pointing toward the direction of the market? I’m not sure yet, so far the market appears to be one frozen winter landscape.

UPDATE 11:44am EST: FYI – leeches – the Yen just fell off the plate. There’s definitely a seller lurking around 1.0925. This might be bullish for equities.

UPDATE 11:52am EST: Gold busted through a very important resistance level today and has come back.

Frankly, this puts the entire wave count in question right now, which as of late has been a big furball anyway. I have no predictions regarding Gold as of now. My recommendation would be to stay out of Gold until we see a clear breach of either 835 or 740. In between those levels you’re just asking for more whipsaw pain and positions are not very defensible.