Well we looked very close to a high at the close yesterday but with the gap over strong resistance likely at the open we could see an extension further upwards. On a sustained break over the rising wedge resistance trendline on Dow then we are forming a new pattern that is not yet clear. The same applies on SPX. Dow 60min chart:
Thanks to the Bank of Japan, I got pretty much no sleep at all last night. As you all know, they announced that they would be printing up nearly a trillion dollars a year, with no stated end-date, for the purpose of buying up their own government’s bonds as well as equities, both domestic and abroad. The currency wars are in full swing, and we have truly lurched into a new level of insanity. My bearishness on precious metals and crude oil (and their producers) is the only silver lining right now.
October is turning out to be far more “trick” than “treat” for equity bears.
At the midpoint of the month, things looked sensational. Stocks were breaking down left and right, and it seemed that we had finally encountered a sea-change in the market.
Since then, however, stocks have exploded higher with a gusto that I underestimated. I certainly expected a bounce, but nothing of this degree. Much worse, it seems that the cessation of QE (announced yesterday) has done nothing to slow the equity bulls down.
This kind of environment can really mess with one’s head. Let’s take a look at the past couple of days on the ES: (more…)
I last wrote about gold in my post of October 9th.
Price is slipping back to its critical triple-bottom support level of 1180, as shown on the 5-Year Weekly chart below. I’m watching for a break and hold below that level for a possible re-test of the 1000 level as I mentioned in that post…particularly if the SPX:VIX ratio breaks and holds above the 150.00 level, as I mentioned in my post of October 24th.
What a vomit comet of a day, huh, folks? Below are a couple of the kinds of patterns I still love on the short side. I find them more safer and saner than indexes in general these days.
Here’s tomorrow’s swing-trading watch-list:
Long Gap (GPS)