Friday, 6 June 2014

10am update - opening gains

US indexes open moderately higher, with another set of new historic highs. Underlying price momentum remains strongly positive, although we are clearly over stretched on the weekly cycle. Precious metals are on the slide, Gold -$5.



*VIX slips -3%, but is still not yet in the 10s..not that it is necessary.

On any basis, we're now getting toppy, trading above the upper bol' on the weekly.

Notable weakness, BTU -2.3%

*all things considered, I've no interest in getting involved. From a pure price perspective, this morning is a valid short, but the equity bears have no downside power, and at best...1920..maybe 1900.

10.18am..I'd call a top least on a micro-cycle basis.

Dow 16909.....could fall a bit from here.