Tuesday 24 June 2014

Daily Wrap

US indexes started the week with a day of very minor churn. There looks to be a moderate opportunity for a minor down wave to the 1940s this week, before new highs into mid July. Whether the sp'500 can break the giant threshold of 2000 before the next mid-term down wave.. that is almost inconsequential.


sp'weekly8b


Summary

So... we now have 11 green candles on the weekly 'rainbow' chart. Unquestionably, the primary trend remains to the upside.

First support is 1900, secondary... 1800. Anyone seriously think the low 1800s are viable any time soon?
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Video update from Gordon T Long, with guest Rubino. Highly recommended.



This discussion looks at the US T-bond 'mysterious buyer'. Who is buying the US bonds via Belgium? The Fed? The ECB, or someone else? One thing is for certain, it sure isn't Belgium! Regardless of who it is, the bond buying remains an ongoing issue, and one that is certainly help prop things up.


Looking ahead

There is a fair array of housing data in the morning, along with consumer confidence, and the Richmond Fed.

Traders should be mindful that Fed official Dudley is on the loose at 2pm, and Dudley's comments are often taken as an excuse to move. A late Tuesday down wave seems very viable - ahead of Wed' morning's GDP data.

*next sig' QE is on Wednesday
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Who wants some fresh bread?

Yours truly sure knows how to dig himself into a hole. I remain long the Whole Foods Market (WFM). The one solace about today.. well, at least WFM appears to have found a floor. With last Friday being quad-opex, maybe that was indeed a capitulation sell down as sometimes happens.


WFM, daily


I'd like to see the $41s this week, but that is probably an overly bold target considering the recent weakness. I like the company, and from a pure chart/price perspective, the $48/50 zone would be the obvious target zone.

Thank the gods I have the World cup football as a distraction from this nonsense!

Goodnight from London