The Squeeze Is On!

And as we all suspected – the squeeze in equities is officially on. In a little over a session we went from dangling by a thread near lows to threatening a daily NLBL. Unfortunately it was not a setup we felt comfortable taking. The tell tale signs were there and we reported on them – in particular divergences on the NYSE volume ratios plus a monthly NLSL had been touched and reverted. However Fed announcements are times when I stand aside – I’ve been through this game in 2007/8 a few times and then swore to stick with the easy tape.

I did try some lottery tickets near the very lows but unfortunately got stopped out on that last late day drop on Tuesday. Yes it sucks but that’s how it goes. And you know the saying by now: Better wishing to be in a trade than wishing to be out of one.

Look at that NLBL on the daily panel – if it can be conquered today then the bulls are in much better shape. Not out of the woods just yet but they’ll have a pretty good chance to at least fight their way toward 2050. Let’s see if we can get there.

Opposite situation on the bond side and it’s quite possible we’ll slide off the plate here. That hourly Bollinger is clearly threatened and if we don’t see green here soon then momentum will start kicking in.

The Dollar is scraping new highs – no setup here but it’s pure chart p0rn for this lowly expat 🙂

I did however get to keep my crude longs. Of course those haven’t budged very much – just my luck 😉

But they are still looking in good shape and I have now moved my stop to the break/even spot near 56.

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You have been briefed – now have fun but keep it frosty. See you guys later this afternoon.

Cheers,