Yesterday the market tried some recovery, amidst a flurry of news coming from Athens, Brussels and Berlin, regarding the risk of Greece defaulting on its debt. The bounce had retracted completely by the end of the day, but overnight the market is trying again the same rebound, so today the Close may be positive.
In the ESU15 DAILY chart below we can see the next valid support and resistance levels and we have highlighted the fact that the market will reach 100% odds to go SHORT DAILY at the 2091 level. This means that based on our DAILY model reading, the market is already OVERBOUGHT and marching towards a 100% OVERBOUGHT DAILY condition. A new pullback is nearly sure to happen before then. It is hard to say if it will be another sharp pullback or just a small one followed by higher prices. We can only say that when the odds are good, LONG or SHORT, you must take action to profit from the upcoming reversal.
Pfft. And for once I thought the earth had found a politician who was bold and firm. What a joke! This guy was able to defy authority by defaulting for literally a few hours. Then it’s all back to kicking the can down the road. What a feckless wimp.
As impressive as the little chart above looks for the bulls, in the context of the broader market, it means just one thing to me: better prices for shorting. Which is just what I’ll be doing today.
One month ago, I offered up a predicted target for the year’s low on the Dow Jones Composite. We are spot-on so far, having fallen 3% from the original prediction. Here’s what I think we’re going to see over the next few months:
IKN has been pointing out the stupidity of some Apple Watch gold consumption hype and most recently, the non-flight to quality amidst Greece blah blah blah… He is at least as sensitive as I am to this stuff. More so, maybe.
While I have personally tried to tone down the criticism of the cartoons in the gold “community”, I find it difficult with one writer in particular leading the naive into the GDX (with its “drop dead gorgeous bull wedge”), into the Indian Wedding and China demand stories and as a topping on the cartoonish cake, the ‘US jobs will drive inflation so make like the smart money and BUY GOLD before the big institutions do!’ garbage.
Here’s today’s swing-trading watch-list:
Short General Electric (GE)