Monday, September 10, 2012

Opening Indications

As predicted last week with Central Bank (ECB) monetary policy, the knee jerk effect has come and we are already only days later seeing the deadly flaws in the plan (accidental or intentional), but sentiment has changed already which is about right for the half-life of EU grand plans.

The opening indications this morning are somewhat flat with a negative bias. There are a lot of very big events this week that could reshape many perceptions and realities, not the least of which is the German Constitutional Court's ruling on the ESM which is now VERY unpopular, this alone could de-rail the entirety of the ECB SMP-reactivation plans from last week. I wouldn't be surprised to see some caution ahead of Wednesday's ruling, but there's much more which will be discussed in a later post or in bits throughout the day.

Thus far, here's what the tone looks like.

 The SPY is a good overall proxy for what the rest of the market looks like this a.m. as it is leading negative to new lows with each reaction (range) high seeing a slightly deeper negative sending prices back in to an a.m. range.

 GLD gapped down, we'll look at this more closely, but did have a positive divergence on the open allowing it to back and fill in to the gap. There's not enough movement in currency to account for the Gap, I think it has something to do with the ECB reality.

 I did put up the IWM as it looks worse than the other averages, as you can see here.

And the intraday action, which is exactly what the QQQ looks like, confirmation on the downside move.

Futures aren't giving any secrets away, I suspect that's because of a lack of movement at this moment until things start to take shape, but they are as dull as I've ever seen them.

More to come.

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