I last wrote about Canada’s TSX Index in my post of October 10th.
The 3-Year Daily chart below shows that, since then, price bounced shortly thereafter to re-test the bearish moving average Death-Cross formation, then plunged to re-test the October low around the 13,650 level. A break and hold below this level could send this index down to its next major support around 13,000, particularly if volumes continue to build, as they have, of late.
As of today (Tuesday), the TSX is bouncing on a diverging (positive) RSI signal, but a buy signal is not being confirmed, yet, by the MACD and Stochastics indicators. As well, until the RSI rises and holds above the 50.00 level, the buying may be short-lived. (more…)
(Important piece on Greece by the newest member of the StealthFlation team, which I thought I should share with SOH should Tim be so inclined)
- Why had the Eurogroup decided last week to grant a two-month bailout extension until February? This was a political signal for Greeks?
Officially, it was not political but a ‘realistic’ solution since it offers enough time for the “evaluation of Greece’s progress” to be completed but does not extend the ‘agony’ longer than it must. In reality, however, it was a clear message that Berlin is not interested in dealing with Mr Samaras until and unless either he elects a President in this Parliament (in which case a general election is averted) or he wins a general election (following his failure to elect a President in this Parliament). The two months expire precisely when a new government, led by Mr Samaras, or Mr Tsipras is in power. Clearly, Mrs Merkel thinks that Greece’s next agreement requires a freshly elected, or a revived, government. Deep down, the German government knows that it must now lock horns with Mr Tsipras’ SYRIZA. It is quote simple really. (more…)
Well, yesterday I falsely assumed oil might be nearing some kind of bottom. Nope! This is a bear market which has legs. One idea offered yesterday was to go long Russia as a countertrend play, but as oil continues to collapse, Russia is following right along (since, like Tesla, they’re kind of a one-trick pony).
I just bought Russia (as well as about nine other securities). I think it’s time to make bouncey-bouncey.
What a fine morning, eh, Slopers? Just a quick chart illustrating succinctly how the carry trade that’s been supporting our grotesquely-overpriced equity markets is getting blown straight to Hades.
“Hey, Nikkei, you’re so fine, you’re so fine you blow my mind, hey, Nikkei!”
OK, as a child of the 80s, I couldn’t help myself. Anyway…….
The Japanese stock market seems like it’s just doing great guns. I mean, goodness gracious me, look at this – gee whillikers! (more…)
I’ve been suggesting shorting Russia over and over and over again. Nice to see it falling completely to pieces……(first short idea marked with the green arrow):