Cloud Surfing

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A pilot friend of mine defines “cloud surfing” as flying just above the clouds – i.e. skimming the upper-side like a boat on the water.  Once again, that appears to be the action in the overall markets as well.

When last I posted (March 3rd), the 15 month ichimoku charts were all above their support zones.  The 3-ish week pullback we had from the Feb 18 high only served to bring price down to support; none of the indexes broke down through.  Since then, as you all know, the only direction has been north- and we have broken out above the clouds again.  Of interest for me is the Dow’s and S&P’s long-term overhead resistance.  NASDAQ crushed its LT resistance back in October 2010, but currently seems to be struggling (a tiny bit) with its upper cloud boundary:







Just for fun, I also took a look at a few symbols that have been on Slope as of late: Latin America, Japan and the 20-year Treasury:

ILF: I started watching this one after Tim mentioned it as a short (truthfully, the Sofia Vergara photos were what caught my attention).  In any case, yesterday my oscillator warned “buy/cover” and was confirmed with a break out today:


Gratuitous Sofia photo:


EWJ: Obvious short a few weeks ago…  I’m still holding, as I sadly do not think they are on top of anything yet.  I would cover with a break of resistance.


TLT: Oscillator signalled “buy” around Valentine’s Day, but I’m waiting for a conformational break through the upper cloud boundary – which looks darn close: