Here at the dawn of rectumification, I will start with this bit of well deserved self congratulations, which is as opposed to my usual self flagellation. Our Chart Pick List Was Short Up the Wazoo, Woohoo! Now What?
At 6:30 AM in New York, early rising traders already lost the plot on the short covering rally that arose out of Asia this morning. They’ve broken sport at Friday’s low of 4395. We are looking at a 5 day cycle projection of around 4325. But shorts like to cover when round numbers break, so I suspect that we’ll see 4300.
For the sake of posteriority, I present to you the 5 hour bars on the ES. As you can see, 4325 is a real sport level. And so is 4275. If you want the big picture, go here and try it out for 90 days risk free. You’ll get the sport and resistance levels, trend indicators, and price projections for cycles ranging from 4 weeks to 4 years or more.
Over on the planet Crapton, we see the Buttcoin boys squeezing them out with tremendous regularity and force. Cycle projections have plunged. Lest we forget, the conventional measured move price target of the top pattern breakdown is around 14,000. But if they break 28,900, that would complete an even bigger top, with a price target of negative 8,000.
Butt, all kidding aside, don’t worry! BTC has really strong support at 3200, 1200, and 200.
Meanwhile, over in the Fixed Income and Carry Trade Institutional Overview Node (FICTION), Treasuries are rallying on a flight to safety, aka fist off, trade. Oh my gawd, is that going to end badly. Big update on Primary Dealer condition coming later today.
In Goldbuggery, we wait to find out whether we’ll be safe or sorry. Update on that coming tomorrow.
And as for the Your Row, Americans like me, living in Europe and earning their living in US Doodahs, might, MIGHT I SAY, have a decent hedge working against the horrendous inflation raising the cost of bread and circuses over here.
And cake. Let’s not forget cake.
Which we can always eat.
And now (Paul Harvey voice) the rest of the story:
Fed Will Administer Volckera to Cure Inflation Pandemic, and We’ll All Die
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