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Tokyo Tremor Leaves No Tsunami, No Trace 12/20/22

This is a syndicated repost published with the permission of Stool Pigeons Wire at Capitalstool.com. To view original, click here. Opinions herein are not those of the Wall Street Examiner or Lee Adler. Reposting does not imply endorsement. The information presented is for educational or entertainment purposes and is not individual investment advice.

Overnight, the BoJ widened its band for long term government bond yields from 25 to 50 bp. The moved surprised the market. The USD crashed against the yen, and so did the ES, 24 hour S&P futures. Briefly. It was a moment, and then it stopped, and a few hours later, the market was right back to where it left off at the New York close yesterday.

I was awake when the tremor coursed through the world markets, and I read the breathless analcyst commentary. And I thought, jeeze, these poop heads are the same all over the world. Clueless.

So I was not surprised when I re-awakened later this morning to see it all gone.

The rebound has broken a 3 day downtrend channel, confirming that yes Vaginia, we have been in a 5 day cycle up phase since yesterday. That means that unless longer cycles come to the rescue and also turn higher, the down phase directly ahead of us could be a doozy. If it’s not, then we gotta start thinking, go long, old man.

Meanwhile, if this rebound gets a second wind and the ES gets clear of 3830 after the New York open, then we’d be looking at a conventional measured move target of 3870ish. And if it doesn’t, then we roll over, break the low, and head for 3750.

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For moron the markets, see:

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