Thursday, December 3, 2009

Morning Post

No comment on the jobs report or the way CNBS covers it. Markets remain at the top end of their trading range they have been stuck in for a few weeks. Indicators remain overbought. IMO upside potential is limited, but that is not saying it cant go to 1121 or 1135.

/ES 60m - Virtually no reaction to the jobs report contrary to whatever chart CNBS had on the screen that showed a huge spike after the announcement. It was an S&P futures chart. Maybe it was in 133 ticks or something, but it sure was a misleading graphic. Maybe someone will pick up on that and bust them. Blue P2 wedge dominates the range. Possible gray channel. Green line is lower support from the last few major bottoms.

SPX weekly -  The reason I show this chart is that the divergence line on the weekly RSI is cracking. Bears looking for a top can not lose that divergence. There is room for it to go over a little and still keep the divergence, but not much.

DXY - Looks like a triangle to me over hte last 5 days. Could be a possible channel down (dashed gray). Pink lines are the major bull market falling wedge playing out. The series of lower highs and that upper trendline need to be busted.


Gold /GC 60m - The top trendline is clear. What this chart does not show are the weekly and daily indicators that are extremely overbought.If you look at the chart on a weekly tine frame it looks like the left side of Mount Everest.

Frozen Concentrated OJ daily - Don't laugh. I promise you will not be laughing after looking at the chart. So who cares the price of FCOJ has DOUBLED since march. You get a feeling they are not telling you the whole story about inflation and what the Fed needs to do with rates? I'm gonna start throwing in a few like this from time to time.

I'm gonna do a UNG post today  and update a bunch of charts. Folks, it is flat out boring and most likely will remain that way thru the end of the year. Sorry. My gut is that we slowly grind price up thru late december and then all bets are off.

GL trading.