Good morning, everyone. Well, sadly, as I predicted, the ol’ Fibonacci continues to do yeoman’s work at clamping down on price action. After we got a nice tumble yesterday on the /RTY, the 2150 Fib stopped it dead in its tracks, and it slowly climbed all night long.
The bigger picture makes it plain as day. The 2150 is acting as support now, and this one red line has had, for weeks, incredible power ceasing the /RTY in whatever direction it was going at the time.
On a happier note, far and away my biggest position (palladium, by way of PALL) had a sensational evening, blasting higher for a few hours before settling down a bit into what is presently over a 3% gain on the /PA contract.
I am hoping to hang on to this for months, if possible, with an eye toward a long-term bull market in the metal. Yesterday morning was a bit distressing, but it has definitely brushed itself off nicely in the past 24 hours. The series of higher highs and higher lows remains in place for /PA.
The big economic data point was the GDP this morning, and as you can see, our economy shrank for the year time in years, and the final quarterly report was 150% weaker than expected.
Palladium notwithstanding, I remain very cautiously positioned at a mere 67% of cash and zero margin. What’s absolutely crucial for the one or two surviving equity bears on the planet is for the “CPI High on the RTY” (red arrow) to not be exceeded.
