ES/YM SPY/SPX/INDU/DOW

It’s Friday and for the past few Friday’s it has been retracement day…. meaning we reverse and move higher into our HWB retracement targets.

There is a good amount of unfitted business below – this is usually taken care of Tuesdays – Thursdays.

2423 remains open on the ES / 2430 on the SPX as a down town profit target…

A 10 point gap & go prior to open would be a solid pointer for the retracement – without it, we may continue lower until we find the next support level.

These are the levels in working order for today.

Regulation is Crisis-Proof?

Unlikely.

The farcical Business Advisory Councils disbanded over “differences” of opinion as to how recent home-grown terrorism and White Supremacists / Neo-Nazi “sympathies.”

JP Morgan’s Jamie Dimon – lead drudge of the Strategy & Policy Forum – called it quits.

Trump immediatley tweeted – “he knows plenty of CEOs to replace ‘grandstanders’ who resigned from his manufacturing council.”

It seems the President’s interest in bringing back the Chinese Walls – pissed a few Bankers off.

Our “Leadership” (a complete shit show complete with Bread & Carnival) is unable to prevent Crisis, let alone Regulate it… That will not impede these freaks from trying.

The Big Top closed a few weeks back… for good.

You can watch it on your smartphone.

PS. I have never voted.

#GSCO
GSCO

The Reflation Trade

Or the rate of change of inflation over time –  The Inflation rate is declining over time, but it remains positive. (Their verbiage – not mine.)

Central Banks despite their huge and sustained injections, can’t effect change… Yet… despite massive efforts Globally.

#CHINACPI #DISINFALTION
China CPI

 

 

 

 

 

 

 

China faces greater economic risks internally – The PBOC will need to mobilize once again, even with massive RMB injections.

Global reflation is failing while Debt extends.

#REFLATION #INFLATION
Global Reflation

 

 

 

 

 

We must consider what Central Banks will employ.

I don’t believe Monetary efforts will assist in preventing a further decline. Governments are going to be required to spend and spend at a pace unseen in Human History.

 

Morcheeba

Whom do you trust – No one and nothing.

The Algos took control and ran us down on the DX/YEN with the short breaking. The DX spiked to near 94s on the 6/Basket – once the Algos began feeding on the Currency pair… it was over for the metals.

Gold and Silver were sold hard.

Gold broke it’s Line in the Sand @ 1272.

Silver has not failed it’s support @ 16.53 – yet.

Energy and the Metals are going to follow the Dollar/Yen – The Dollar finally got off its ass and rallied hard.

West Texas Intermediate Crude bares observation at this juncture, we broke our Long Setup and have some unfinished business with an overnight Gap prior to setting up the next short entry.

#CRUDE #CRUDEOIL #WTI #WESTTEXASINTERMEDIATE
West Texas Intermediate Crude

 

 

 

 

 

13/21 Cross setting up along a period of flatline consolidation.

#CRUDE #CRUDEOIL
West Texas Intermediate Crude 2

 

 

 

 

 

Simply put – I believe this trend will continue into Labor Day.

Waiting for a retracement to re-enter QM/CL Hedge:

#CRUDE #CRUDEOIL
QM/CL

 

 

 

 

Retracements are to be expected in the hunt for Money – the primary trends are going to see the Sands shift.

Yesterday’s meme:

In order for this to be a healthy Bull Market the 1276 would need to trade – it’s quite normal and expected… 1272 is support and failure would likely send us to back to the bottom of the range @ the 1201s with many bumps along the way – 1250, 1244, 1240.”

I doubt this is merely a dip-in on GOLD, but a larger reversal that will have a number of micro retracements towards the .618 @ $1201.

 

 

West Texas Intermediate Targeting

$44.50 trades and we cold see the $38.50 level – the extremely bearish COT provided a number of inferences where “Commercials” began adding to their Hedges over the past few months.

It required a bit of shake & banks, but they took the longs for a good ride and reversed their positions when $51’s were looking likely…. Profit targets are not always met.

Rarely have I seen the WTI COT so negative – which leads me to believe there could be one large whipsaw ahead. Best to wait for a retracement before jumping in and making sure there is confirmation – the Algos remain on the hunt for suckers.

Exited my hedge on the break of 47.55 – waiting for position back into the trend.