Tuesday, October 23, 2012

Some Risk On Signals

I usually save this for after market, but there are several near term risk on signals I'm seeing, perhaps because of the F_O_M_C tomorrow, maybe just the move we are looking for in our evidence, but here are a few risk on signals I'm seeing in the near term.

In the fight to safety trade of Treasuries, specifically TLT, the 1 min DID NOT confirm the gap up today suggesting  a risk on signal, money out of safe haven assets and in to riskier assets like stocks.

 TLT 3 min negative

 TLT 5 min negative

 TLT 10 min near term negative

FXE
The Euro...

 5 min in a leading positive position on the gap down today.

 10 min also positive

$USD
 And on the opposite side, the $USD 2 min leading negative with no gap up confirmation today

 3 min looks even worse

As does the near term 10 min.

All of these are near term risk on signals for the market to see upside.

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