The 5 day cycle may have peaked last night, soon after bottoming. This could signal a shift to short up phases and extended down phases. At the moment it’s too early to be sure. A break of yesterday’s low would confirm. If there’s no break, the next most likely outcome would seem to be development of a trading range of approximately 4350-75. Ugh.
On the other hand, if this market clears 4385, time to back up the pickup and load up.
Meanwhile, the stability of the Treasury market under this torrent of supply is a sight to behold. Once this supply tsunami returns to “normal,” I suspect that there will be hell to pay as the record futures hedges get unwound. As Professor Berra told us, “When you come to a fork in the road, take it.” We Now Know What is Driving the Rally
Gold, on the other hand, has slipped below a key sport level, completing a top pattern with a measured move target of roughly 1855-60. Gold Gets Nearer Important Cycle Lows
For moron the markets, see:
- Swing Trade Chart Picks – First Time in Months, More New Shorts Than Buys June 23, 2023
- We Now Know What is Driving the Rally June 20, 2023
- We Have Met the Resistance June 20, 2023
- Gold Gets Nearer Important Cycle Lows June 18, 2023
- The Fed’s Slush Fund is Working June 16, 2023
- Swing Trade Chart Picks – Adding Late Cycle Buys June 16, 2023
- Investors Breathe Sigh of Relief But D-Day Is Now June 6, 2023
- Incomprehensible, That’s What You Are June 2, 2023
- Modestly Hedged Dealers, Record Short Hedge Funds Suggest Disaster Ahead May 25, 2023
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