Thursday 28 January 2016

10am update - Oil is really helping

US equities are seeing renewed strength, battling again for a daily close above the sp'1900 threshold. Price structure is a multi-day bull flag, highly suggestive of the 1970s within 2-3 weeks. Oil is clearly helping spike market mood, +5.8% in the $33s. Metals are losing their fear bid, Gold -$11, with Silver -1.9%.


spdaily5



USO'daily2



Summary

*for now, I'd dismiss the opening black-fail candle in Oil, although clearly, mid term, the gains are unsustainable. Supply cuts need to be severe, and those look some months away.
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The post FOMC bearish hysteria is quickly fading away.

With price structure as it is, a weekly close >1920 looks probable, although that won't be easy, as the market has to cope with a reminder tomorrow morning that growth is slowing.. if not an actual economic contraction.
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notable strength, FB


Breaking above resistance, but then earnings were actually very good.

*I wonder how many retail amateurs were trying to short that one for earnings... on margin. No doubt, some are covering for their lives right now.

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time for some sun...