After all the markets should have been flying the whole day after Obama gave us another huge stimulus bill via his extension of the Bush Tax Cuts.
Yesterday, I posted on Copper which is an excellent predictor of economic growth.
http://tradersutra.blogspot.com/2010/12/watch-copper.html
Copper is at a major resistance point. Copper has been on a tear of late greatly helped by global liquidity flows. Can it get thru this level and make multi year highs even in the face of China which is desperately trying to slow their economy?
Today lets take a look at the SP Futures.
IS this a little too perfect? Is this even the Kiss Of Death?
As you can see the SP Continuous Futures kissed exactly off its 61.8% Fibonacci retracement of the sell off from 2007. This point was at 1235 on the Futures yesterday. This is what we call a bearish hammer candle at the highs of the day. This is considered a huge divergence. Nasdaq futures posted similar technicals as well yesterday.
Gold, Silver, and Copper futures all had huge run ups mid day but were all faded towards the close. Gold and Silver are both referendums on Fiat currencies but also on global liquidity as well. These are momentum commodities. Are the turn arounds saying something about crowded trades?
Did I happen to state that long term interest rates have surged the last 3 months? Wasn't QE2 supposed to lower rates further?
Yesterday was a huge day for the risk trade. It was risk reversal day. We need to figure out of this continues today and the rest of the week. POMO is ramping up with a smaller monetization today followed up by bigger POMO's the rest of the week.
What also should be watched is the German Bunds Market. There was a failed bond auction in Germany today and the DAX couldn't close above 7000.
The thing that the market has going for it of course is free money from the Fed, but seasonality. Its year end and mark ups seem to happen this time of year.
BTW.....Netflix CFO resigned right after he sold $52MM worth of stock.
No comments:
Post a Comment