Two red days in a row? Is that even legal? Well, before we get into that, let’s look at a couple of markets which suggest to me that we’re going to war, even though there’s no chatter about it.
Oil has completely shaken off its production news from the weekend and continues to zip higher, rendering the Sunday gap moot.
And gold is up at $3400 again, moving up continuously for days in a row.
War with Iran? Makes sense to me. It panders to the anything-for-Israel mob in U.S. politics, and, importantly, it serves the tried-and-true purpose of completely distracting the blinkered public from its domestic issues.
If the missiles start flying, you heard here on little ol’ Slope first!
In the meantime, the equity markets have been slowly slipping lower after the vomit-inducing nine-day bull-fest from the past couple of weeks. As with yesterday morning, we are down about 1% across the board (although I’d hasten to add that much of that burn-off was eliminated yesterday for most of the session, although we still ended in the red).
It does, however, introduce the possibility that the Zone of Uncertainty I defined in last night’s post might not have to be endured through clenched teeth. God willing, the Lifetime Peak (leftmost) will be followed by the March 25th counter-trend bounce (middle peak) and finally what the mainstream media is calling The Idiotic Nine-Day Insanity Peak (right side).
As for the Fibonaccis, whose efficacy on the equity futures I am questioning more than I was a week ago, the /ES is almost below it (5596.3) and the /NQ, bless its heart, has already done the deed.
Meanwhile, the U.S. dollar is being recognized for the one-ply toilet paper that it is, as illustrated by this USD/JPY chart.
Oddly, though, in spite of our nation being ruinously in debt, it seems we got here even with the solemn pride our leaders take in being, yes, a “wise and important steward of American taxpayer dollars.”
Yep.
