Interesting day, wasn't it?
Early in the morning, it really looked like gold was about to correct, especially since miners had been soft on breadth. But then it did a hard bounce from 1277 and that was that for gold's early morning correction.
PM Miners recovered early losses but I have a hunch breadth was not good -- I will know more when I get all my EOD data.
USD, of course, had another day of misery, and that can hardly be bad for all sorts of things priced in dollars.
Other currencies, too, perhaps: this was in the news:
"An “international currency war” has broken out, according to Guido Mantega, Brazil’s finance minister, as governments around the globe compete to lower their exchange rates to boost competitiveness."
I am wondering if The Brazilian said it before or after the hard bounce by gold from 1277.
It's an interesting time when almost anything you buy in the financial markets goes up -- bonds, stocks, commodities, etc. Only shorts lose, and the dollar -- so far, at least.
It's a sad, sad chart. However, it may tell us how lopsided everything is: short the dollar and long the whatever - at some point, this has to do a dead cat thing, I guess, but when? And how dead is the dead cat?
we said that 1138 would be a level to watch, and S&P lost it and recovered. In effect what market did was some sort of a test of the breakout and our 1136 OEW pivots is around there, and 1138 was a fine-tuned level of mine.
So, the scenario of the rise from 1120 being a wave stays alive -- let's see if it can survive the overnight traders?
Enjoy Your Afternoon!
PS. I read the Brazilian quote at ZeroHedge, here's the link
S&P 500 – May 15, 2012 - Bottom Line: Long term trend is up. Mid-term trend is down. Short-term trend is down Weekly S&P stage is Late Advance (2-C) Daily S&P stage is Strong Decli...
1 year ago