Monday, November 29, 2010

Morning Post, SPX, S&P 500, e-mini

Contagion, is it finally catching on or has the virus just been kept at bay via a massive fiat printing spree? Bottom line is we all know the inevitable results no matter what spin CNBS puts to the story. Bonds will remain front and center. Risk on/off does not matter anymore. there is nowhere left to hide except possibly in precious metals. POMO is being divided to now support multiple markets and can only maintain levels at best.

Economic Calendar -  Pretty busy week after today. Please ALWAYS check the calendar.

POMO Schedule -  $39B in POMO this week. (We'll most likely have POMO from now to infinity or till the systemic failure that is destined to come.) 

Shanky's Dark Side - Where I call all the intraday action and throw out tons of charts.

Pivot Points -  For what they are worth in this busted market.

Dollar has clearly broken out which is not good for the markets. I had assumed that the correlation would break and still do eventually. It has to some degree as the markets are being propped up by the invisible force of POMO as the dollar ramp continues. How can the greatest fiat of then all be seen as a safe haven? The dollar short will be a great play soon. Things might be finally spiraling out of control and altitude loss may begin to pick up for SPX. When the dollar and SPX begin to fall together it will be the beginning of the end.
The dollar has broken out. 82.5 to 83.5 should be the resistance points. Battling with the 200dma as resistance at this point.

The financials are once again trying to signal reality while the other sectors remain in fantasy land. I don't think we're gonna get the catch up pop we got

SPX daily - RSI14 trying to hold the 50 line and the $BPNYA is actually trying to push back up. $NYMO is trying to climb again. All that adds up to a potential neat term bottom being set. They do not indicate some possible sort of improbable strong move to the upside, just a stalling point for consolidation.
Let's see how resilient (how $39B in POMO) these markets can be at this point. the "good" news about the IRE bailout (just like QEII) is now being met with skepticism. We all know that total global collapse is coming and we're seeing the fires burn hotter now. How long can they hold out is the question till the fiat system falls into total disarray? With the dollar battling the 200dma, the minis at support and the daily SPX indicators there is a chance they make a stand here. If the minis crack 78 then all bets are off and the B leg is in and down for the C leg which targets 1150. If it does not breakdown then consolidation should continue in the range of 1200 to 1175.

The holiday season is upon us. Let's try to enjoy it and remember the reason for the season. GL!