Bearish Setup – By ConvictScott

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As all of you know I am probably the least bearish trader around. I am a trend following pattern trader. However, to all things a season, and it is the exact time for the bears to finally do some technical damage to the tape.

Why do I say this? Because as pullbacks have gotten shallower and shallower over the last few months volatility (real volatility in price right now, not the market take on implied future volatility in the VIX) has fallen to a historical extreme and then painted an uptick. I posted these two charts on Sunday and I think they are well worth a revisit.

ConvictScottPic1

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Into the Wild Blue Yonder

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Well, friends, I’m off to the airport to begin a long, long, long flight. Five-star general Iguanadon has the keys to the car, and Slope’s contributors have stepped up and stated they will be doing plenty of posts for the next couple of weeks. I’ll still sorta kinda be here, just not quite as persistently as usual. My travels usually coincide with market turmoil, and hopefully this time will be no different. Up, up, and away!

0729-euro

Data versus Attitude

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This screen shot below just goes to show how a single data point can be spun according to the disposition of the observer. Reuters Business is “just the facts, ma’am”, when it comes to this morning’s consumer confidence number. Business Insider is the typical rah-rah, permabull, USE ALL CAPS zealot (BOOM – Good Lord, people). And, of course, our friend Tyler at ZeroHedge sneers at the ostensibly good news. As journalism students have long been told: “consider the source.”

0729-attitude

Death of the Dollar? Gold is an Inflation Hedge? Really?

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[ed: Excerpted from NFTRH 301's opening segment. Those looking for paint by numbers directions and casino game instructions (talking to readers at a certain site that may or may not re-publish this article... not you Slope, which I know will politely tolerate my ramblings :-) ) feel free to just skip the article. You will not get what you are looking for. The balance of NFTRH 301 did the nuts and bolts technical work on the relevant US and global markets, precious metals, currencies, etc.]

Take a look around the gold bull landscape and tell me how many of them are featuring a chart like this, showing the US dollar in a bullish short-term stance (to go with the weekly bullish stance we have noted for so long in the ‘Currencies’ segment).

usd.daily

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