The insane ping-pong of this market continues on, and it’s getting really tiresome. The reason for this morning’s strength? Liz Truss this. British Gilt that. Apparently the Charles Dickens economy has taken complete hold of all global markets, and the making-it-up-as-we-go-along government in the UK keeps toggling whether markets are roaring higher or plunging lower.
Because of all this recent volatility, it really screws up intraday charts. If you look at this minute bar chart, the insane action on Friday makes this morning look like a pancake.
If we look more closely, allowing the chart to scale itself without the Friday zaniness, you can see that, regrettably, it’s been a steady sail higher. As I’m typing this, about half an hour before the open, the NQ is up triple digits, and every single futures market I follow is green, up between about 1.5 and 2%.
The same scale/context issue applies to gold, which is roaring higher this morning.
Looking at a weekly, instead of minute bar chart, you can see that the effusive enthusiasm investors are throwing at gold may be met with a cold shower soon, as the line drawn above represents a former support level (now resistance) of some consequence.
This week promises to be fairly unhinged, as not only are earnings kicking in (in earnest on Wednesday), but this is an options expiration week, plus traders have PTSD from last week. I’m back in Palo Alto now, thankfully, and can manage and monitor things better than when I’m on the road. Strap in !
