Wednesday Morning Briefing

Welcome to our morning briefing. Here we are reviewing short term setups ahead of the NYSE opening bell. If you are a scalper or swing trader then these setups may be of interest to you. As usual keep in mind that these are short term setups although they could be used as early entries for more longer term positions.

Not much on the horizon this morning – plus I’m not a big fan of trading short term setups ahead of a holiday. So let’s just cover some of the more salient charts. Bonds are now in downside acceleration mode – here’s the 30-year which hasn’t been able to get above the 25-hour since it breached both SMAs on Friday. If you’re short then there’s really nothing to do until we get a breach back above the 25-hour.

Silver bumping against upside resistance – although this is the short term view it relates to the weekly and monthly SMAs it’s currency facing. I covered that in detail in prior weekend update. It’s good to be short here until about 33.17 when it may pick up steam. Both LT SMAs are near 33.3 – easy number to remember 😉

Very similar situation actually over on the Dollar side – except here I don’t see a potentially bullish ST pattern. Those boomerang moves show that there’s still life in the ole’ greenback but that a seller is rather brutish about keeping it below 81.5 (which would be a LT Dollar inflection point). I would not touch this one with a ten foot pole right now – don’t need that headache ahead of the holiday. If it runs off without me then I’ll just have to live with that fact but those boomerang moves are a bit much even for this seasoned market megalomaniac 😉

Cheers,