Living Inside a Broken Clock: Monday, Dec. 28, 2009.

by gmak

The year is coming to an end but there is no relief in sight. Market Ticker tells us that there are even more games being played with treasuries than one could imagine. Zero Hege tells us that they are trying to auction off another $118 billion. The 10 year yield continues to creep up. Everyone seems to want the CAD in their stocking.  One percent of the population are psychopaths and there are 400 million Muslims in the world.  How long are Westerners going to be required to tip toe around the feelings of others while they spit in our faces, abuse our social security systems and disrupt the classrooms where our children are trying to prepare themselves for life. Tick. Tock. Tick. Tock.

EQUITY

The world is green, except for some smaller western European countries, and the Middle East.  The DAX is holding its most recent lofty level. Looking at the daily chart for SPX, one can clearly see that my note about “This worries me” was correct as the index has marched up on volume so small it should be stated in metric. Looks like SPX will test the trend line “Since Oct 21” before year end. The dashed horizontal purple line in a TD risk measure that suggets a “make or break” point – meaning SPX will either be turned back decisively, or go on to bring cheer to the bulls and despair to the bears. The magic number there is 1133.90.

ES used the pivot at 1119.75 to launch itself up 5 points or so. I don’t think that anyone should trade this tape. ES Pivots

• R2: 1127.50 = Probably one of the stops as SPX bullies its way to the TD dashed purple risk level above.
• R1: 1124.75 = ES already put a pin through this at midnight ( how fitting – insert your favourite heavy metal tune here). ES is camped at these levels as I type – so ES is waiting for something.
• Neutral: 1119.75 = source of the floor for today.
• S1: 1117 = On these low volumes? It would surprise me.
• S2: 1112 = Maybe in the New Year……

FX

USD has been pushed back down to support at 77.50ish. If it breaches 77.40, IMHO, then we are likely to revisit the low 76’s.

CAD is on fire. My guess is end of year buying to square accounts for goods and services. Certainly JPY, EUR, and GBP are tepid in their relative movements. EUR i9s having a hard time getting over 1.4402 – which is the middle (neutral) pivot.

I’m not trading before the new year. I don’t know anyone directly who is. I listened to my brother-in-law tell me horror stories of the lazy, system-milking scum (there is no other word for it) that work as technicians in our medical system (putting lives at risk), only in those jobs because of “Fairness” and lowered English language standards. I’m no longer feeling very tolerant and charitable. Welcome to the broken clock.