Equities are seeing just a touch of weakness, but which is a natural retracement of the recent gains. There is a gap around sp'1900 that just about everyone should be aware of. Market will have a high chance of closing May at/above the 1900s. Metals continue to slide, Gold -$7
sp'60min
GLD, daily
Summary
The action in the metals is certainly more interesting than equities. With Gold breaking support yesterday..there is nothing but empty air below.
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It is notable that VIX is STILL in the 11s...and if you believe sp'1940..or higher..then VIX 10s...if not single digit VIX is coming in June.
Perhaps that will be enough to fully capitulate most of the remaining doomer bears.
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Notable weakness: drillers...declines are building in DO, RIG, SDRL The weekly charts are starting to look suspect, esp' DO (Diamond)
US equities open with minor chop, although the sp'500 has already fractionally broken another new historic high of 1913. Precious metals remain weak, and with Gold below key support, there is plenty more downside ahead.
sp'daily5
sp'weekly8
Summary
No doubt..a fair few will be launching index shorts at these levels.
Good luck with that though. Such traders are shorting into weekly/monthly cycles that continue to push higher, with a VIX that reflects a market that has zero concern about anything into the summer.
With another sig' QE-pomo due tomorrow, the month is set to end on a largely positive note. Even if GDP revised comes in negative, it won't particularly matter, since the market is already expecting it.
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Perhaps, the worse 'doomer' interview I've seen so far this year. It is to be seen, as an example of how consistently stupid some of the 'omg, the financial system is about to collapse' people are.
I could pick it apart into a thousand pieces of 'You idiot, how can you say that...'..but really...Kirby should receive a lawsuit from the Federal Reserve.
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Notable weakness: the drillers, DO, RIG, SDRL, not sure what that is about.
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US indexes are comfortably holding the opening gains, with new historic highs for the Dow, SP, and Trans. R2K is showing significant strength, +1.5%. Precious metals have decisively broken, Gold -$25, with GLD losing the 122s....next support...115.
R2K, daily
Summary
*I'm tired..so..if I dissapear today...you know why.
Ohh, and yeah, if I'm not writing, I will pull everything offline..thats just how it is.
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The 4 spike floors which I was droning about across the last week or so..well, they sure played out as good warnings of a cyclical floor.
Primary upside target remains 1170/80..and we're only 2-3% away...seems a given next week.
