Is Bernanke Wiggling Free?

The recent hikes in Silver and Crude seem to hae the entire commodity complex on edge, who knows what's next. Remember that these funds are like super tankers and can't just drop a position in one order like most of us. With the margin hikes has come that nasty word on Wall Street, the one that keep fund managers awake at night, "uncertainty" and when you have a super tanker that may need to make a dramatic course correction rather then plunge into a possible reef in uncharted waters, as the captain, you'd probably start making a course correction now.

We have some evidence that this may in fact be the case.

 First we have a bear flag in the red box in the CRB commodity index. The notable feature seen here (unless the flag is not finished forming) is the fact that there was no false breakout above the flag. The bear flag in one of the most watched sectors this week would be very obvious and very obvious patterns are almost always broken up, but not this time. It seems they just high-tailed it out of commodities, who has time for false moves when the next margin hike could come down any minute?

This is a definitive change in character with regard to Wall Street behaviour that we have observed over the last several years and suggests that Wall Street doesn't have the luxury and time right now of setting up quick money making traps, they seems more interested in packing up and getting out before the 10 a.m. check out.

 GCC is another commodity index, this one did take the opportunity to run a quick game on the bear flag, but it was a quick one and perhaps one they needed to run.

I can see the cycle here without even using 3C, it's very short, not at all commensurate with the accumulation period. However, what really stands out on this chart should be obvious to you, it's this morning's action and being this i only a 15 minute chart, they did take the opportunity to play the game, but real quick. The large opening candle took 15 minutes to construct or destruct. You can see that this price action is very out of the norm for GCC.