And then there are double tops. Some hold. Some don’t.
Today, in the very short run, the trick will be in the pullback. The market is in trending mode, so the first question will be whether there will be a pullback or not. Question 1a will be, if there’s a pullback, how deep?
No pullback or a shallow pullback would suggest a move into the 4130-35 range today. Conversely, dropping below 4093 would give the bears some hope, but it might again be the hope of fools. Below 4085, I might pay more attention. First, the Rally, Then …
Meanwhile, if you are one of the few, the proud, the strong, who are still short bonds, I send you thoughts and prayers. The 10 year yield should be rising from here, but there’s a gusher of cash headed into the market in April. That could send bond prices soaring and yields plunging. Two levels to watch on the 10 year are 3.45 and 3.28.
Lately there’s been a lot of bearishness about the USD. Looking at the strength of the EUR/USD, if you’re an expat like me, living in Euroland on a USD income, yes, I’d be concerned.
But the chart isn’t exactly conclusive here. It all depends on which central bank will out ease the other. Lately the Fed has been in the lead, pumping dollars into the world banking system like mad.
What about Safecoin? Taking a breather too, but needs to break 26,500 to get me bearish again. On the one hand a cycle projection of 28,500 est fini. But a measured move target of 34,000 from the big base breakout is still out there to be considered. It would need to drop back under 25k to take that off the table.
Are you Mr. Goldfinger? Do you love gold? Well, then you gotta love the weekly chart.
For moron the markets, see:
- First, the Rally, Then … April 3, 2023
- Gold Takes a Breather Before Lunar Launch March 30, 2023
- Swing Trade Screen Picks – Traders, Take Your Naps March 29, 2023
- Watch Out For This If the Market Comes Unstuck March 27, 2023
- How to Play When Fed Changes the Game, Not Just the Rules March 19, 2023
- Systemic Meltdown Under Way As Dead Bodies Finally Start Surfacing March 12, 2023
- February Withholding Taxes Say – Fade the Jobs Report! March 2, 2023
- Here’s Why There Will Never Be Bull Markets Until This One Thing Happens February 26, 2023
- You Can Now Follow the Diabolical Usual Suspects February 16, 2023
If you’re serious about the underlying forces of supply and demand that drive the markets, join me!
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