First, yet again today we have a very high correlation among the risk assets we typically use on the leading indicator layout, however (other than there being negative divergences in them), there's pure, palpable fear everywhere from tEurope to the US with sovereign bond yields rising, Swiss yields dropping in to the negatives, treasury yields dropping, the VIX being bid, so I'm not sure I understand what the game is there.
In any case, the futures are also now showing some positive divergences, they aren't huge, but should relieve a little of the downside from today, how much longer they can do this?
As for Gold, I have no problem with the intraday exit, I think it was timed well between gains and momentum.
Context is nearly perfectly in line...
CONTEXT's ES model vs ES is almost perfectly in sync.
ES current positive divergence
NQ positive divergence
And R2K positive divergence, this fits well with the market averages, there don't seem to be any big surprises, this looks like a simple relief bounce.
Is interest rates about to start going up?
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Yes, I know - it does not make any sense - FED is about to cut
rates...but....real world interest rates are not always what FED wants it
to be.
5 years ago
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