The Back of the Snake is Broken

Yes, I think in the year of the snake with China down 3 of the last 4 days including last night pretty bad, the year of the snake is upon us and please forgive the imagery, but I believe the back of the snake is broken.

However, that does not mean the snake is dead just yet, it can still writhe about the ground, it can even be dangerous. Few things are clean, clear and linear in the market and when they are, they are to be viewed with a suspicious eye.

Yesterday we saw an ugly day, the minutes were indeed the pivot of the week if not the year, but toward the end of day we also saw some positive divergences forming, I believe we will see upside today, which is fine, it's not to be feared, yesterday's damage is not to be doubted, any upside is an opportunity, I believe we will see it pretty early, but we'll see if those divergences continue.

I will be leaving about an hour early to drive about an hour away in rush hour traffic to pick up my wife from the airport as I have not seen her since the 2nd week of December due to health reasons.

Futures are coming up next, they will confirm in my view the high probability of a bounce that will and has already sucked in those in the habit of "Buying the dip", they are about to experience their most painful hour as the market seemingly reward their initial ignorance and they gain confidence in a flawed strategy that is not in line with the major theme of the market.

It will be interesting. I think our gold position will do well today too.