Tuesday, November 8, 2011

Post MF Global Account Transfer Bump

Well, there you have it…the markets were given their dope, junkies that they are, and we have pretty much what I expected…sharks are circling as the bait feeds on its scraps.

We have building strength in the dollar, weakness in the euro and an out of control equity market. The patterns on equities suggest a little more push up…the dollar however, is consolidating bullishly and is about to begin an epic move…much of which will likely occur in a matter of just a few days of trading. I will post some charts shortly…any rally in the ES is likely to remain below 1278…additionally,it should be noted that as I had indicated the buy signals in the 30 year UST triggered in 137’s and second in the 135’s…UST’s are now 141 and likely going much higher (lower yield)…Gold and Silver and Oil are getting in their last highs for a VERY long time…I believe that among the best shorts around are going to be in the energy complex as I have stated many times before. I had covered my Oil shorts in the low 80’s. CL, YI/SI and YG/GC are ideal shorts up here. One other comment about the Equity indexes. the EMD (Midcap 400) has been significantly under performing the last few days intraday…this is usually a pretty reliable warning sign that the market has worn out its welcome. Of course it did outperform on the upside initially during the beginning of the last bounce.

Meanwhile, Goldman Sachs, Morgan Stanley and others like them are scrambling to look solvent…when its obvious that they are not…there are no good Christmas presents coming in the next months…only coal in the stockings this year.
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