Wednesday, January 12, 2011

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

You bail one out you gotta bail 'em all out and Portugal is the latest in a long line of countries that have and will keep coming to the tit for more fiat infusion to keep the dream alive. Oh happy day. Another bond auction that did not fail. Green Shoots! Tremendous new that is. Germany and France survive another week. This game can not go on forever (but "they obviously think it can). I ask, if Greece was $120B in debt and had to borrow another $120B to stay alive, how can a country whose major exports are ouzo, grape leaves and tourism gonna pay back even the interest on such a loan not to mention the principal? When this all ends is ends very badly with (as we have been forecasting for well over a year) global default.

I did a post charting the minis today HERE.

MW making me smile watching CNBS for a change.

I suggest you take a peak at the econ calendar HERE. The rest of this week is pretty busy.  Especially Friday morning. INTC after the close tomorrow and JPM before the open on Friday.

Dollar struggling to get thru the resistance at the $81 level. Been range bound since the end of the year from $79 to $81. Looks to be trending down now.

New POMO schedule comes today at 2:00.

The charts say some sort of top is coming sooner than later. While with our investments we still must yield to the Fed and the manipulators, you need to keep an eye on the overbought and over bullish markets with deteriorating indicators. I have been calling a target of 1283 (with a possibility of more upside) in late January or early February. Gonna take a catalyst to make that happen I believe. It is amazing what $7 to $9 billion a day can do for the markets while 33 of the past 34 weeks have seen new mutual fund outflows of over $90B and insider selling has been at or near record levels.

CPC - Note not only the red EMA 20 that I use to make the calls, but the blue EMA 100 is even beginning to reach extremes. $BPNYA looks like it wants to cross and the divergence in the $NYMO is pretty sick.

Daily SPX - Just look at it and ask how can it extend from here based on surrounding economic conditions? Or why is is here as well. 

Daily SPC Cycle Chart -

GL and GB