Daily Archives: May 1, 2012

Mayday Buyer’s Reward

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This is what buyers of the TF were rewarded with during intraday action through to the close on Mayday, as shown on the Daily chart below (note that volume was higher on Tuesday's candle and is reflecting a build in volatility):

This e-mini futures index has, basically, been in a large sideways trend since the latter part of January of this year. Price has been consistently rejected at 830.00, but remains above 780.00. It's had difficulty remaining in the upper one-third of this range and closed the day just below the 50% level. Failure to hold this 50% level could send it back down to 780.00 or lower.


Mass Media Flatlines

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The only reason I'm doing this post is because I happened to be in a waiting room.

I was at my son's optometrist, and the only two selections of reading material were (1) a large-print edition of Reader's Digest; (2) a recent issue of Smart Money. So I had to choose between the reading material of a resident of Iowa with failing vision or a person who considers Jim Cramer a sharp Wall Street insider. I relented and chose the latter.

In it was an article about currencies, and it showed some long-term charts of currency movement. What irked me about their presentation – – and I have seen this in many, many places, including the Wall Street Journal – – is that the editors or graphic designers don't seem to grasp that the amount of space allocated to a y-axis should really be greater than about one centimer. Witnesseth:


Do this yahoos expected anyone at all to be able to draw any conclusions or insight from a graph like this? Good God in heaven, people! You don't have to be an expert! You only have to be SENTIENT!


Trendline Nails Euro to the Pip

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It's been a dynamic, exciting morning.

My newfound affection for miners has been serving me well. I'm long a variety of precious metals miners and other resource companies, and I'm intending to hang on to all things GDX-related until it reaches my target of approximately 49.17

My biggest short, the FXE, finally turned positive with the strong ISM report. The trendline did an amazing job of nailing the top.