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This advance has been so orderly it feels like it could go on forever like this. Of course, it won’t but we’re here to consider today. And given the recent preponderance of a 4 day loop, it would seem that today would be corrective. In other words, sideways to down a tad. On the other hand, there’s still an unmet 5 day cycle projection that has risen to about 5890. Using a 4 day basis it looks 5900 ish. When they get this close, the round number syndrome dictates that it’s normally a done deal. Although maybe not today.
5857, right here as I write, looks critical to the very short term outlook. If it holds, then the market may be shifting into trending mode, perhaps for a blowoff move. If it breaks, then a little deeper pullback would be in order. I don’t see the likelihood of anything dramatic on the short side. Any pullback looks destined to see buying come in at old rising trendlines located every 5 to 10 points on the downside. The most important trendline would be in the 5825-30 range later today.
Hard to believe that we’re talking about spport in the 5800s. Whodathunk we’d ever get this high. Round Number Syndrome
Meanwhile, gold is holding in its trend channel for now. Can it go higher? Gold Says, Not So Fast!
And the 10 year yield was driven back from the top of the trend channel yesterday. Light supply helped. But that won’t last long. On the other hand, estimated tax collections for the quarter are due today. That windfall could result in T-bill paydowns for the balance of October and reduced coupon supply at the end of the month. We’re Now Week to Week for this Bull
Over on Crypton, this pattern has the BTC bros dancing on the ceiling.
So, my FX mavens, should I buy more EUR here? I have 18 months worth of living expenses stored in my piggy bank in eur. But the USDs keep coming in, thanks to you and Uncle. Trading FX is hard, especially when you have no choice. When you live in one currency and earn in another, you are always trading, even if the choice is to not trade.
My reading of this chart tells me that 1.09-1.085 looks like a good place to buy euros.
On the other hand, looking ahead, it seems to me that the ECB will need to be easier than the Fed. And that would mean a weaker EUR vis a vis the USD. Ach! Decisions decisions.
For moron the markets see:
- Swing Trade Screen Picks – Loads of Buy Signals with Good Setups October 15, 2024
- Round Number Syndrome October 13, 2024
- Gold Says, Not So Fast! October 10, 2024
- We’re Now Week to Week for this Bull October 9, 2024
- Get Your Red Hots Here October 3, 2024
- Market Can’t Live By Repo Alone September 25, 2024
- Macro Money Blows the Roof Off September 17, 2024
- Primary Dealer Clown Show Danger Pales in Comparison to Hedgie Daredevils September 11, 2024
- Here’s Hard Evidence that the Slowing Economy Narrative is False September 8, 2024
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