Wednesday 13 December 2017

3pm update - the Yellen continues

As Yellen continues to answer questions, US equity indexes remain moderately higher, but the bulls haven't yet been able to break a new intraday high. VIX remains in the upper 9s, but a sporadic burst to the 11/12s remains due. Metals are broadly higher, Gold +$9, Silver +2.0%, with Copper +3 cents to $3.06. Oil is -1.0% in the $56s.


sp'60min



VIX'60min



Summary

As Yellen continues to utter the occasional 'transitory' and 'when conditions merit', the US market is choppy. Cyclically, the micro 5/15min cycles are both on the high side, and the market will be inclined to cool into the close. Thursday has typically favoured the bears, so tomorrow should be interesting!

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notable stock: MU, daily



There is s/t threat of a test of the $40.00 threshold. Keep in mind, earnings are due next Tuesday, and there will be a great many buyers on every little down wave. I'm m/t bullish of course... way beyond $50, which is a valid target before year end.

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notable strength, miners, GDX, daily


Gold saw a jump on the rate hike, but s/t, it was cyclically oversold anyway. The trend into year end still looks rather ugly. For GDX... huge multiple aspects of resistance in the mid/upper $22s.
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strength, CAT, daily



Underlying super strength, and trading at new historic highs. The 225/50 zone is on the menu within 12-18mths, not least if copper (a good indirect indicator) is near the $4s.
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back at 3.30pm for a micro update...


3.30pm... Most indexes are set to close a little higher. The micro 5/15min cycles do favour the bears into the close, and more so... tomorrow. At best, 2646/36 gap zone... before pushing into the 2680s, whether just before... or after Santa delivers.

notable weakness, X, daily


US Steel is set for a second net daily decline, but is broadly strong.. after a recent break >31. 
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strength... BABA, daily



... Broadly chop-consolidation.... bullish way >200.

back at the close!