Good morning. Futures are a touch higher, sp +1pt, we're set to open around 1634. Precious metals and Oil are both moderately weak, -0.5%. Today is a 3bn QE-pomo day, and there is little reason why we won't be closing in the 1640s.
sp'60min
Summary
Certainly, we're seeing a little weakness in a few things out there, but once again ,its nothing significant.
*I remain interested in going long Oil.
USO, 60min
It would seem very unlikely USO going under 33.20. Perhaps 33.50/40s this morning, but higher into the afternoon?
Video bonus from Oscar...
9.40am... well, there goes the SP', now 1638....those 1640s look viable by 10am.
no doubt, some bears getting the boot here.
Oil is lower, but it sure ain't interesting to me at that price.
Tuesday, 14 May 2013
Nightmare for the doomer bears
The primary trend has been up for over four years now, and there remains absolutely no sign of it ending. With the Fed still doing $85bn of QE a month - along with other central banks, the bears face months, perhaps a few more years of waiting for a significant wave lower.
sp'monthly6c, rainbow - hyper bullish outlook
Summary
Indeed, the scary outlook for the bears is that this QE-fuelled rally continues for another 2-3 years. When the next major down cycle of 12-24 months does occur, we might be starting from levels that are double from where we currently are.
The above chart is just one of many outlooks I am keeping in mind. After all, if the bears - even yours truly, have learnt anything from the last few years, its to keep more than one scenario in mind, especially when that single outlook is a bearish one.
*Regarding the above chart, its an outlook that is greatly shaped by the ECM cycle (Armstrong, M.).
Primary trend remains higher
However you might like to count the last few years, the current trend remains unquestionably upward. What is especially interesting in the past seven months is the near relentless melt higher. I've little doubt this is due to the new QE-pomo program, - and aided by the default 'melt higher' of the HFT algo-bots.
Baring an end to QE-pomo, this market is going to keep on rising for months...if not the next few years.
A few other scenarios
sp'monthly6
Scenario D is an especially attractive one. Its been twenty months since the last significant fall, so we're more than due a major retracement of 15/20%. Yet, I have to conclude and note that unless the Fed end QE, any hope of a significant wave lower should be put on hold.
**Bonus chart
sp'weekly2, rainbow
I just wanted to add this to highlight the issue of the rapidly rising lower bollinger band. It was sp'1428 last week, and is now 1449. So, its rising at roughly 20pts a week. By the end of June, it'll be around the 1550s. That is a mere 80pts (5%) lower from current levels.
Based on all recent down cycles, that is the 'best case' for the bears, which frankly is an utterly depressing outlook for this summer/autumn.
Looking ahead
There isn't much data tomorrow. Best guess, we open a little lower, but battle back higher across the day. Tuesday is a 3bn POMO day, so the fuel will be there for those algo-bots to melt it higher, so long as there is no significant selling volume.
*One last thing, I realise such bullish charts will annoy many out there, but thats just how I see the market right now. I won't shy away from posting such heresy. If it takes another 2-3 yrs for this nonsense to break....so be it. I will be here. In the meantime, what is imperitive, is to survive further months (even a few years) of bullish hysteria and mainstream delusion.
Those bears that are still around when the next big down cycle comes, it will be beyond the dreams of Avarice.
Goodnight from London
sp'monthly6c, rainbow - hyper bullish outlook
Indeed, the scary outlook for the bears is that this QE-fuelled rally continues for another 2-3 years. When the next major down cycle of 12-24 months does occur, we might be starting from levels that are double from where we currently are.
The above chart is just one of many outlooks I am keeping in mind. After all, if the bears - even yours truly, have learnt anything from the last few years, its to keep more than one scenario in mind, especially when that single outlook is a bearish one.
*Regarding the above chart, its an outlook that is greatly shaped by the ECM cycle (Armstrong, M.).
Primary trend remains higher
However you might like to count the last few years, the current trend remains unquestionably upward. What is especially interesting in the past seven months is the near relentless melt higher. I've little doubt this is due to the new QE-pomo program, - and aided by the default 'melt higher' of the HFT algo-bots.
Baring an end to QE-pomo, this market is going to keep on rising for months...if not the next few years.
A few other scenarios
sp'monthly6
**Bonus chart
sp'weekly2, rainbow
I just wanted to add this to highlight the issue of the rapidly rising lower bollinger band. It was sp'1428 last week, and is now 1449. So, its rising at roughly 20pts a week. By the end of June, it'll be around the 1550s. That is a mere 80pts (5%) lower from current levels.
Based on all recent down cycles, that is the 'best case' for the bears, which frankly is an utterly depressing outlook for this summer/autumn.
Looking ahead
There isn't much data tomorrow. Best guess, we open a little lower, but battle back higher across the day. Tuesday is a 3bn POMO day, so the fuel will be there for those algo-bots to melt it higher, so long as there is no significant selling volume.
*One last thing, I realise such bullish charts will annoy many out there, but thats just how I see the market right now. I won't shy away from posting such heresy. If it takes another 2-3 yrs for this nonsense to break....so be it. I will be here. In the meantime, what is imperitive, is to survive further months (even a few years) of bullish hysteria and mainstream delusion.
Those bears that are still around when the next big down cycle comes, it will be beyond the dreams of Avarice.
Goodnight from London
Daily Index Cycle update
A very quiet Monday in market land, with the main indexes closing mixed. Weakest was the Transports, but on a daily chart, it looks like a rather clear baby bull flag, highly suggestive of further upside later this week. Baring a break <sp'1600, mid-term trend looks very strong.
R2K
SP'daily5
Trans
Summary
Transports indeed has the most bullish price formation now, with that tiny little bull flag. Considering that QE is still ongoing, there is no reason why this market won't keep battling higher.
A daily close in the sp'1640s looks viable later this week, and that opens up the 1650s by end May.
For those seeking a major equity wave lower...it looks like its still some months away.
a little more later...
R2K
SP'daily5
Trans
Summary
Transports indeed has the most bullish price formation now, with that tiny little bull flag. Considering that QE is still ongoing, there is no reason why this market won't keep battling higher.
A daily close in the sp'1640s looks viable later this week, and that opens up the 1650s by end May.
For those seeking a major equity wave lower...it looks like its still some months away.
a little more later...
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