The last bastion for bears these days appears to be crude oil. Now that the OPEC cat is out of the bag, we can actually focus on simple economics, and it’s pretty clear that the worldwide glut in oil isn’t about to abate. Looking at the intraday chart, I’d say oil is ripe for some more slippage.
NQ is still someway short of the double bottom target at 4815, but ES has now come (twice) within three ticks of the target full retest of the all time high, and should make that target shortly. ES Dec 60min chart:
As we prepare to enter another day in this rather ridiculous occupation of ours, I think it appropriate to keep in our hearts and minds the terror, shock, and heroism that was experienced at Pearl Harbor on this day seventy-five years ago. We should all aspire to courage in times of distress and need.
90% (my low-balled estimate) of you, the investing public, are herding when it comes to the bond market. You may not know it because the overwhelming psychological atmosphere is to reaffirm, not question peoples’ behavior. That is what herding is; a comforting feeling of going with the flow and being at one with your environment and the greater zeitgeist.
Now, please don’t be offended by the title; you dear reader may well be one of the 10%. But out there in the financial investment realm, they are herding, BIG time, as bond yields are expected to continue rising, because… media; because… “Great Rotation, part 2” and because… the story of epic secular changes and the chance to be early and clued in to a great new market phase are so alluring.