Mole MIA

Hello rats – I had to take care of some personal business most of the afternoon/evening, thus I didn’t have time for a full update. Nothing much has changed thus far – we gapped to where I thought we’d stop, which was near 786 in the SPX. That line in the sand remains tomorrow and the next one after that is 756, which is 1/2 way between the 78.6% fib and the 741.02 November 21 low. Now the only question remaining is whether or not we continue tomorrow or if there’s a relief rally brewing – I personally wouldn’t mind the latter as I want a reload. Frankly, if today’s tape was any indication – fuggetaboudit.

The Monday post is still valid in every respect and both wave counts remain in play.

One quicky chart before I fall into bed: The Yen has been pushed outside its BB again – no doubt that it can stay outside for a few days but it’s been beaten to death lately and there doesn’t seem to be much of a reprieve. This however can’t go on forever and I expect a reversal rather sooner than later. We watched equities taking it in the rear all day today despite a weakening Yen and I can only imagine what will happen if we see a reversal here. I gave that FX dislocation last night some thought and am convinced that there was (and continues to be) some massive Yen manipulation at work here – this feels unnatural. They knew what a Yen rally might have done to equities today and even throughout a weak Yen we barely avoided a slide into the abyss today.

Anyway, that’s my story until someone offers me a better theory. And with that I’m turning in.

Cheers,

Mole