Wednesday, June 8, 2011

Gold (GC) Divergence 6/8

Here we have the 4 hour chart of gold and can see lots of divergence forming (shown in purple) on the recent rebound from its sell off in early May. After its most recent peak it seems to have sold off right into the top part of the retracement channel of the May sell off (@1532). I think if we solidly break below this level, we can see gold get back to the very low 1500s in the near future and for now stay in this area. I've already entered this position feeling its low risk and high reward at this point.

EUR/USD Divergence Sell Update 6/8

Originally we showed some signs of divergence in the euro etf (FXE) and suggested a sell Monday, well as it turned out it pushed higher and formed even more divergence which we pointed out right before bernake opened his pie hole, which gave a great opportunity for a small fade into the position. You can see between Monday and Tuesday we formed divergence on the actual spot pair (divergence shown in purple), which realized a good sell off into our first support at previous lows Monday night (@1.455) and also the first retracement level shown in yellow. I'm taking off my fade at this level, and looking for us to break lower into the yellow retracement channel.

Nasdaq (NQ) holding resistance turned support 6/8

the Nasdaq index on Monday broke what looks like very strong support around the 2278 mark. It was almost certain we would at least come back and test it going up before heading further, and the question was would be if it could hold and keep us moving down over the next couple days and it looks like it clearly has. We are now quickly moving past this level and if we close near lows today, I see no where for it to stop till we get to the 2200 level

Another Chance to Sell WTI Crude Oil? 8:20AM CST 6/8

(Chart 1 - WTI Crude Daily Chart Zoom)
(Chart 2 - WTI Crude Daily Chart)

Opec can't reach an agreement and oil rallys right into resistance.
I call bullshit and look to sell this on a technical basis

see my previous post here