Wednesday, February 29, 2012

Or Shall We Call It Bernanke's Revenge?

Wondering about the sell-off in gold?
May be it was a revenge of Bernanke over Ron Paul?
Paul was showing him some precious metal and telling Ben how he screwed US Dollar. Then the sh*t hit the fan.

Gold Loses Glitter.

The big news for the day is sell-off in gold. GLD dropped from $172 to 168 in less than five minutes.
And there was no counter trend rally after that either. And the sell-off happened with very high volume.
By that standard, silver was relatively OK.  But almost everything in the commodity sector sold-off including copper and oil.

Such a waterfall decline in one class of risk assets do not bode well for the others.  I am not saying that the crash will start from tomorrow. Rather, I want to stress the fact that the up-trend is still intact despite all the divergences and warning signals. But Russell was down over 1.5 % while SPX was down merely 0.47%. We know that “Wall St” likes to make-up the stocks at the end of the month and high flying / well known stocks have to be guarded. May be that is why they can let Russet go but protect SPX and DOW somewhat.

I was not expecting any selling before next week so when SPX showed red I was rather surprised. With today’s price action we have a bearish reversal candle and may be a bearish engulfing candle as well. I am not sure of the bearish engulfing pattern because as per Bulkowski  : The body of the black candle should engulf or overlap the white candle’s body,…… Shadow overlap is not important.”  But in today’s case, I do not think the black candle body overlap the white candle body.
In any case, tomorrow being the 1st of the month as well as Thursday, we can expect the market to be up. May be it will re-test the high before turning down. We will have to wait and see.

The ECB handed out more than $700 Billion and that may have been the last act of kindness for a long time to come. When Mr. Ben indicated that there would be no QE for a while, the junkies in the market went for a withdrawal symptom.  Did the traders and speculators decided that since there will not be any QE anytime soon, there would be no more liquidity and so sell the gold? NY Fed even did a reverse REPO today.  Even before Bernanke opened his mouth, EURO was not showing much life after the news of LTRO. So what gives?

While the 4QR GDP was reported to be at 3% ECRI is not backing away from its call for recession.

Let us see how the next jobless numbers come out.

In the mean time the Trend Table continues in green except gold. But I am happy to wait on the side line to see if all other risk assets move in the same direction. We may see a whipsaw in gold.
Thank you for reading . Please forward / retweet the post to your friends and join me in Twitter. (@BBFinanceblog). As always, I welcome your comments and suggestions.

Tuesday, February 28, 2012

Apple A Day Keeps Bears Away.

Or whatever.  The stock market keeps grinding higher and everyone hates this market. The bears hate it because it is grinding them to dust. Bulls hate it because they are under invested and would like to go back and invest more. Brokers hate it because there is no action. We are all calling a top for months now and yet nobody has seen a top.

Now that DOW has closed over 13000 and SPX over 1370, do we throw away all the rules of TA, cycle analysis and just believe in the powers of Central Bankers? Buy the F**king dip?  I am no bear and I have no problem joining the buy program only if I could convince myself that this time is different. That all the divergences do not matter!  That this time is truly different!  The path of least resistance is up-ward. So the next we hear is DOW 13500 and SPX 1400.

Look at the 5 min. chart of SPX.
In the normal course I would have said it is a double top. But now I don’t know what to say.

The summation index (NYSI) is turning down and in the past it has been followed by market corrections.
(Source: Ciovacco Capital)
Will it be different this time?

J Wagner of FXCM has the following chart;
Mr. Wagner thinks AUD has some juice left. 
Look at the weekly chart of AUD.
I am thinking that AUD is at the top of the range and not much room to run.

If we have to guess the Top based on TA, then there is no better person to guess than our good friend Cobra.

As per his measured move target, SPX can go up-to 1376.

In the mean time, the trend table continues to be long.
Do not front run unless you know what you are doing. Market is smarter than all of us. Too many of us are calling for the top and reversal and it will come when we least expect it. While we wait for the market to show us the next bend, here are some interesting reads:

Thank you for reading . Please forward / retweet the post to your friends and join me in Twitter. (@BBFinanceblog). As always, I welcome your comments and suggestions.

Short Curly Hairstyles 
The short curly hairstyles can be a magnificent option for you who have natural curly hairstyle. The long tresses for the curly hairstyle is indeed great to have, yet to get the short hairstyle for your curly hair will be the nice thing too since the curly hair is great to see in the short hairstyle. By having the short hairstyle you will be able to make your curls to appear in small ringlets that will cover the sides of your face nicely. This will end up in giving you the romantic and gentle expressions in your performance then suitable enough to combine with the feminine outfit such as the strapless dress. You can have this looks and still don’t need to do many efforts in preparing your hair every day. The short hair is always the simplest hairdo to be maintained, right?

Latest Short Hairstyles

Latest short hair styles are not something to avoid or even to be afraid of. Are normal haircuts for more and more women these days. First and foremost fact that you should consider is, are you really prepare to change your outlook appearance and try a new haircut that will give you some new and fresh outlook.
latest hairstyles may show new fashion include hair coloring or combine with cute accessories. So, this way can be one solution for your healthy hair. Moreover, every season always raise some fresh reshape or change about hairstyles. In addition, we just try to give several examples from photos.

Monday, February 27, 2012

Trendy Short Haircuts 

Short trendy haircuts are again invading the fashion trend and many celebrities have rediscovered how appealing these hairstyles can be.Women of all age group are inclined towards these hairstyles because they are easily manageable and give a younger look.Short haircuts accentuate the bone structure and hides wrinkles,so older women prefer such haircuts.

Pictures of Short Haircuts 

Many women are wary of having short hair, as they fear that it will look unfeminine. This does not have to be the case. There are many short hairstyles that can look very feminine, with the added bonus of being low maintenance. Short hairstyles will not suit everyone, but if you experiment, you might find that a short hairstyle is actually more flattering than a longer hairstyle.

Short Haircuts 
Short Haircuts 
Short Haircuts 
Short Haircuts 
Short Haircuts 
Short Haircuts
 Short Haircuts
 Short Haircuts
Short haircut would help in adding more volume to it. If your hair is thinning at the end of the strands go for short bob cuts or short layered hairstyles and adding a a few flicks to them will give a stylish look.

Anyone Seen A Top?

 - Otter Party!

Another BTFD day. Another world has been saved day.  And we have not seen helicopter Ben throwing money in USA yet, I mean directly. He is doing so indirectly by SWAP lines and ECB LTRO. Can you imagine where the indexes will be when Hel-Ben shows up here in USA, giving away free money? You better shed your bear skin and try to think like a bull. Because he will definitely show up.

I have whole host of technical indicators screaming murder but the bottom line is that the up- trend has not been broken. Time to buy?  I would say that unless SPX breaks 1370 convincingly (stays above the level for at least two days in a row), I am not ready to become a bull. VIX may be signaling something:

Also there is a divergence between SPX and VIX. SPX making higher high but VIX is not making lower low. Rather it is also making higher high. It is now up two days in a row.

Per ZH Dow crossed 13000 22 times today.
(Source: ZH)
Now we know that ZH is given to hysteria, but still they have a valid point here.

SPX closed 1.85 points up while Dow closed 1.44 points down. Gold sold off and so did oil. I have an interesting chart from Uempel :

He does not give conclusion but being a smart person that he is, poses a question. Anyone seen a top yet? So while wait for the trend change, here is the trend table for today. The Indexes are mostly unchanged.

Hope it will help you to stay on the right side of the market.

Thank you for reading . Please forward / retweet the post to your friends and join me in Twitter. (@BBFinanceblog). As always, I welcome your comments and suggestions.

P.S. Interesting read from Stock Trader's Almanac;