Around the Globe
Today’s Economic News:
We are very light on news, but remember, it is OPEX Friday.
Quote of the day:
The best way to compile inaccurate information that no one wants is to make it up. – Scott Adams
Current Breadth Readings: (click here to see all our breadth charts)
Breadth is about as good as it gets around the charts.
ES SP500 Futures Comments:
OPEX Week this week! Yeah. That should bring in some interesting moves/halts/moves/halts. We have mentioned that breadth remains uber strong but at the same time over-stretched. That will correct and could correct with a slower move at higher prices, confounding the bears even more.
For today we would like to look for a short in the 1468 to 1470 area and we think prices that print between 1450 and 1445 will be attractive enough to buy. This is all sans news of course, which as far as scheduled, is quite light today.
Looking at our bell-weather ETF (TLT) we see that it has hit its 118.50 target which makes us think stall, and the dollar looks like it is at a good re-gathering place now. With that in mind, we think it is time for a little market reflection where everyone looks at what they are holding and perhaps makes some rotational moves.
Those money managers that have been lucky enough, or skilled enough, to have profited by these moves will most likely become cautious heading into the year close, putting on downside protection and hedges.
Overall we think the market will be tight the next couple of days. For that reason we have penciled taking off Wednesday from writing this column. If we do get a big move today or tomorrow we will re-think that. Consider our desire to sleep in on Wednesday as a market call, that nothing much will happen between here and there.
US Dollar DX Futures Comments:
Our dollar is sitting near its lows. Intraday it is making a reversal pattern and we would expect to see an attack of the 80 line.
TLT Twenty Year Bond ETF Comments:
Where did all that safe money in TLT go? Equities. We hit that 118.50 target and are now more than 15 off from the highs. We would expect to see some reversal here back up to 122/24 area.
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