Well, we did see a green close, as I said yesterday and we still have two more days to see the test of the high. In this day and age of Qfinity anything is possible and team O&B may not like to see the market red for too many days. It is now illegal to have red close for more than two days in a row. However if we do not see the test of the high by Friday and we see continued weakness, I would advise caution if you are planning to go short. The cycles are up till around 25th-27thSeptember. After all, the test of high is only about 10-15 points away and unless we have seen a failed test of the high, it is too risky to short.
That Bernanke put is reflected in the following chart.
The bullish sentiment is now reaching the danger zone but not everything is extreme yet.
Today both bonds and equities were up. Gold and silver spent the day hurrying up and going nowhere. But Crude gave sell signal. However, given the geo political madness in Middle East, I do not want to take a short trade on Oil. Thanks but no thanks.
I would like to share few videos from Bloomberg:
That pretty much explains QFinity.
Forbes also talks about gold:
If you remember, I had written before that I expect gold to reach around $2500 in near future and I am waiting to get long gold again, now that every central bank has started printing money and inflation will come before they realize it. I am waiting for a good entry in PM.
Things may seem quite but it is churning inside and it is highly unlikely that a triple witching week will be quite. It is time for portfolio adjustments. So better be careful.
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