Told Ya So

I hope you blood leeches bothered to listen yesterday as I strongly questioned the sanity of touching equities with a ten foot pole. Of course Mole’s paranoia once again was proven to be spot on as retail schmucks are being delivered to the woodshed by the bus load. Too colorful for ya? Show me a chart you say? Alright, how about this?

Rather clearly the low participation holiday jump higher established a bit of a volume island – meaning a gap below and a vacuum above. Which means we’re stuck within about 1820 and 1840 – a.k.a. the 20 handle house of pain. Enter at you own peril – if you do take a number and make sure you bring your own stash of vaseline – we’re running low over here.

Alright – let’s be productive and focus on what actually shows some promise today. Here’s ole’ bucky which is exhibiting some uncharacteristically strong mojo – what’s going on – is it spring already? May have something to do with Draghi’s musings this morning – I saw the EUR/USD fall off the plate during his speech.

Very interesting jump higher on the Dollar and it even attempted to poke through that double layer weekly SMA stack (i.e. 25-w and 100-w). I’m rooting for ya buddy but you have to show me the goods now. So let’s be objective which should be easy as we’ve got a nice inside day candle today – at least as of now. Alternatively you could be short right here with a stop above the 25-week – a few ticks away to be safe.

More goodies on the way – grab your secret decoder ring and meet me in the lair:

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Cheers,