Gone are the days in which I wear a sandwich board reading "S&P 600 Is Next!" in the public park. As firmly in control of the market as our bullish breathren are, we have to take things a single ES point at a time. And don't even get me started on the NQ, which evidently was preplanned with all the elegance and sophistication of a six-inch plastic ruler from a second-grader's backpack:
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Further to my post of March 6th, volatility rose again on Thursday's decline in most of the Foreign ETFs on my Daily chartgrid below, as represented by the white histogram which is just below price.
India, Brazil, China, and Chinese Financials closed below those March 6th lows today, and the Emerging Markets ETF (EEM) closed just above…ones to watch, particularly in view of the comments noted in my posts on the BRIC countries on March 15th and March 12th.
Additionally, I'll be watching to see if further downside continues on the other Foreign ETFs in view of the build in volatility and Thursday's continued decline in the U.S. Major Market Indices.
Global economic data released Wednesday night and Thursday morning showed multiple contractions in manufacturing in China, in manufacturing and services in Germany, France and Europe, and in European industrial new orders. Additionally, core retail sales contracted in Canada, the price of homes continued to fall in the U.S., while the U.S. Conference Board's Leading Index rose, and unemployment claims dropped in the U.S.
Competely by chance – – I'm not even sure how I tripped across it – – I saw this video of Irish Journalist Vincent Browne confronting the ECB's Klaus Masuch (and, periodically, Barbara Nolan, the Irish representative on Klaus' right). It just goes to show how The Powers That Be have no real answers for the public.
As for our own country, any time you hear B.S. Bernanke cite for the millionth time the "dual mandate" of the Fed, just remember the real dual mandate is: (a) protect his friends; (b) get rich after he's done with his post.
….and let's hear from Slope's Patron Saint on the topic….
The broad market, supported by the glorified boiler rooms on Wall Street, the glorified infomercials in the mainstream financial media and the glorified monetary clerks at the Fed, operates to its own set of rules and cycles. For instance, now we have conventional investors who used make cracks about their 401k's becoming 201k's actually becoming hopeful that they will regain all of their lost value. The wonders of inflationary monetary policy has brought this prospect tantalizingly close to becoming reality. Close, but…
Over in the gold sector however, where investment is actually a form of revolution (against inflationary fiat monetary systems), it is not so easy. Investors simply must be mindful of the risk vs. reward setups at all times because the same forces arrayed in support of the stock market are lined up against the barbarous relic. I am not saying this is a conspiratorial cabal, but I am saying that macro manipulation (like the recent 'reworking' of US Treasury yield curves) is just the way it is, whether it is planned out in the shadows to the most minute details, or just the result of embedded 'business as usual' academic myopia in a fiat system.
Looking at my short scans, and yes they can seem quite futile in these types of markets, two industries with the most well defined bearish patterns and that are appearing the most often are the energy stocks and utilities. I've included four charts below of short setups that you can take if this market does indeed rollover sometime between now and the next two millennia.
On a side note, I was talking to a buddy of mine in the financial sector, and he told me that their brokerage firm is receiving an unprecedented surge in applications to become traders and financial advisors. Not surprising though because anyone looks like a genius in this market quite honestly. When the cookie starts to crumble is when you start to sort the wheat from the tares.