Friday, 20 May 2016

12pm update - still battling upward

US equities continue to build gains, sp +17pts @ 2057, with next resistance at 2060. With the USD +0.1% in the DXY 95.40s, the metals continue to cool, Gold -$4, with Silver -0.1%. Oil is in minor chop mode, -0.1% in the $48s.




Little to add... on what is likely to be an increasingly choppy OPEX.

Market makers would be more inclined to try to pin the SPY to 205 (aka.. sp'2050).. rather than 204 or 206.

The only remaining issue for today is whether a significant wave of rats want to sell into the weekend. Certainly... it has to be asked.. who would want to be buying at this time.. or price?

notable weakness, agri', DE, monthly

Deere is net lower for today by around -5%. Seen on a monthly cycle chart, we have a giant bear flag.. with massive resistance @ $85. DE looks highly vulnerable to the mid $50s before year end.

To be clear though, I like the company for the super long term.. I'll be looking to buy in the $50s... agriculture is one of the ultimate economic core sectors. Bullish... food.

time for lunch