Monday, January 4, 2010

Morning Post

Good morning and happy new year everyone! Back behind the desk and ready to get it cranked up for the new year. I have a lot of catching up to do on reading and charting but that should not take to long. After reading ZH for a few hours last night I came away feeling rather sick. I had taken a hiatus to get away and clear my mind. Sad to know when I decided to step back into the ring I find nothing has changed and if anything have gotten worse. Rants galore are coming as our government and decision makers deserve a world of shit. The "holiday" moratorium is over.

 SPX daily - The blue lines are the P2 bull market rising wedge. It has  almost ended. That big black daily reversal candle is telling and should scare the bulls, but it has to get a confirmation.

$DXY 60m - The dollar has been range bound over the past week. Is this a breather before further strength? Somewhere near $76.73 is a 38% retracement of the move off of the 74.17 low, so this may not be it for the correction (if it is a bull run?). Note that it is at support. This move corresponds with the rise in the futures. It is yet to be known if the up/down correlation with equities is in tact or not. I'm voting not at this time, but not leaving out the possibility that it will resume.

/CL (Oil Futures) daily - Quite the run for oil holding the lower yellow channel and breaking back into the larger gray channel that has dominated price for the past year. The run looks tired and it spent a lot of effort breaking the backtest of the channel and the 50% line of the yellow channel. With RSI getting up there and S Sto looking to turn, a  day or more may be all there is in this recent pop. Of course if things in the middle east continue to keep popping so will  the price of oil.

/GC (Gold Futures) daily - Threw in a big gap up over the weekend allowing it to stop short of the 38% retracement and the lower channel line. Indicators look bullish. Let's keep an eye on this one to see if this move is for real or not.

That is enough for this am. Let me go play catch up in stockcharts and see what I can bring to the table later today. Stay warm today and keep your stops tight if you are long.

GL trading.