Wrapping Up The Month

As usual October has been a pretty capricious month and there wasn’t a dry eye left in the house. Tomorrow will be its last trading session but since Sunday is Halloween I don’t expect much activity. So let’s take a quick look at where we are on some of the most salient charts:

The most ominous chart right now must be the Euro. We finished September near the lower Bollinger and it looks like we will be doing so again. What’s worse most likely it will be a shooting star and a drop below 1.25 may actually lead us toward the 1.2 mark. Frankly that was on my Christmas list last year and it’s about time Santa delivers! For the noobs – I’m a U.S. expat living in Europe – you do the math.

Pretty much the inverse situation in equities. This is one of the longest hammer candles I can remember (only challenged by the July 2011 candle) and it has reversed a whole cluster of Net-Line Sell Levels (NLSL). Very very positive and we may be scraping new highs by the end of the year.

A quick peek at the daily and weekly panels. Nice formation here on the daily (left) side and although we are overdue for a little correction I think we may close the week above the NLBL I highlighted. That would be our first weekly buy signal in a while. With a bit of luck, effort, and some scotch tape we may be ready to roll into Santa season. Frankly a little shake out beforehand would actually be healthy and shake out some of the late comers.

But the best chart today I will have to reserve for my intrepid subs – we are most likely near one of the best monthly buying opportunities of the year:

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Bonus Chart:

Nice bearish divergence today on the Zero Light.

Cheers,