Cowabunga! Pent up cash on the sidelines? Dogpile into small caps as they gunned for all time new highs. The DOW is the last index with an upside visible pivot…The structure in big cap blue chips such as IBM suggests it is possible…..but as the old saying goes, you can lead a horse to water but cant force the to drink. Hard to imagine much upside follow through for Wednesday. The Russell made a lower high on the afternoon reaction up and often non confirmation marks the upper end of a range. Still, a healthy consolidation on the hourly charts can still set up more upside. Watching the 30/60 minute charts on Wednesday.
Bonds Tens and Bunds had a nice break to the downside. This can be the start of a better daily/weekly leg. Any morning rallies are shorting opportunities in these markets and The structure suggests keeping a core short position on for now.
Copper found a constructive bottom. Next play will be for a 120 minute first cross type of buy.
Crude – on 120 minute Buy – may put in a lower high on the intraday reaction up as the daily charts consolidate.
Gold and silver – like trading from the long side but as mentioned, funds already bought heavy and so makes for a choppy trade.
Sugar – what beautiful converging trendlines on the 120 minute chart! best dressed Oscar…….
Happy trading – all sorts of good markets to choose from! Linda