Monthly Archives: September 2017

Shanghai Index in Weak Rally as China’s Credit Rating Downgraded to A+

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The Shanghai Index has recently begun to rally, after remaining in a large sideways congestion zone since mid-2015, as shown on the following Daily chart.

It’s currently trading under the bullish influence of a moving average Golden Cross formation, with the RSI, MACD and PMO technical indicators making a corresponding higher swing high. However, the MACD and PMO have recently made a bearish crossover “SELL” signal…if the RSI drops and holds below the 50 level, we may see price drop and retest near-term support at 3250, or fall to, potentially 3000, or lower.

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USD/JPY Mired in a 31-Year Congestion Zone

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The USD/JPY Forex pair is mired in a 31-year sideways congestion zone, as shown on the following Monthly chart.

Major resistance and support are formed by a long-term 40% Fib retracement level at 124.34 and 23.6%  level at 105.69, respectively. The momentum and rate of change technical indicators have been in downtrend since mid-2013.

Until we see a clear breakout above or breakdown below one of those Fib levels, the Yen will likely continue to be subject to volatile, non-directional whipsaw price action in between them.

How to Spin a Bomb

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I guess I’m past the point of pretending there’s a decent bone left in my body. Whenever I see news of another nuclear bomb test or missile launch, I stand on my chair and cheer. Anything – ANYTHING – to get this market to fall. So long as it doesn’t hit Palo Alto.

Now that I’ve finished being charming, I’ll mention the obvious, which is that, as of this moment, the ES and NQ are weaker and gold is stronger thanks to Kim returning to his shenanigans. Until this chubby, hairless blob of a man-child actually starts blowing things up besides fish in the Pacific, this dips are going to get tinier and tinier.

Hopefully Trump’s chiding and poking will push  him over the edge. Of course, Trump has a HUGE incentive to send Kim into a frenzy, since that would be the perfect, made-to-order distraction from anything pesky Mueller might serve up.

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