Did not update much this weekend. Needed a break for the charts and the markets, so I took one. Glad I did not, because I'd just be raising hell about having to raise all my fibs again today. I'll get caught up today on the important charts and get to the rest tonight. Thanks for all the votes and support.
Markets reacting to the Far East this AM. Markets are overbought setting divergences. The ISEE Friday was at 230. This is severe nosebleed levels. As mentioned towards the end of last week the TRIN, CPC and several other indicators were extremely toppish as well. Some of these indicators are new to the game that we did not experience in the Sept, Oct run up. Combine that with the screaming 10yr treasury and you are getting a nasty brew for the markets. Alas, there is this one thing called POMO. The cure for all that ills the markets. Don't forget the HFT algos and lack of regulation.
The USB collapsing and the TNX screaming higher indicates a flattening yield curve. This will indicate a risk off trade is building. We're close, but the dailys still have some room to run. So my ramp to Xmas and after all bets are off call is spot on thus far. Still looking at markets topping for good in February , but may have to extend that to early summer.
GL and have a great week.
