Multi-Month Retracement Approaching

Although the indices can move higher, we are witnessing an exhaustion point – Institutions are net sellers, the FED/ESF net buyers. Volume is near absent – Volatility only remains in the most liquid instruments – Energy & Currencies.

2575 remains the potential target for the ES – this places the SPX @ 2578/9.

China is reportedly beginning their new Yuan based contact for Oil tomorrow…. convertible to gold purchased outside of the SGE – ie. Global Markets.

Martin Armstrong believes 23,700 is possible for the DOW on this move.

I do not… Marty is plenty wrong, as are we all. Socrates issued 4 intraday warnings over the last week… 2 – Potential Sells, followed by 2 revealed targets for DOW and reduced risk profile as support lies at 20,000K now.

Whipsaws abound.

Energy Contango

“Royal Dutch Shell plans to withdraw from its last two flagship oil fields in Iraq, officially exiting the country after a century in the Middle Eastern country.  

Iraq is a member of OPEC and sits on some of the world’s largest oil reserves, but contracts in the region have become increasingly lower margin. The company said that it agreed to relinquish operations at the Majnoon field after unfavorable changes to fiscal terms.”

“Saudi Arabia and Russia will continue pushing to extend the deal to cut production by major oil producers, but in 2018 they will turn their attention to an exit strategy from the agreement.”

Times are changing within the Energy Complex – it will be one of the best sectors in which to invest once the dust settles.

 

 

The Price of Gold is Fully pegged to the US DX – again

The game of hot potato has reversed – Currency markets understand the shift back.

The Gold Currency Index vs the Price of Gold clearly demonstrates.

Au-Oli
Au:Oil

This math in the preceding 3 charts shows that if you can get physical gold that for the past 100+ years has been worth between $2,330 – $30,850 for the price of $1,250/oz. – odds favor the purchase – as does common sense. All you have to do get that physical gold is price your oil in Chinese Yuan.

by the Numbers – Support / Resistance

Gold & Silver are performing their usual consolidated price action. Nothing much to add their.

The new target for Gold is the 1323s. Anything above 1301 is Bullish on the 15/60

Silver – 17.30s to 17.52/17.87 Positive Zone.

The Broad indices are a complete Algo driven whipsaw is this consolidation zone.

The long levels on the ES broke yesterday.

2498.75 is the pivot level at resistance – bullish above / bearish below. The ES rallied into resistance only to reverse again.

The YM broke it’s long as well… far more technical than the ES… 22307 is the LIS all downside risk.

The NQ broke hard, a retracement in the FANGS is coming due. 5911.25 is the LIS – bullish above, bearish below.

CL is kicking serious ass to the upside after a prolonged consolidation – target was hit and repeated extensions are possible. 51.19s remains the LIS for S/R.

Dollar/Yen after Yellen/FED sold off – we ended last week in a trailing short – theYen should rally to the 112.07 – the 112.22s = DX weakness – a short squeeze.

I’m expecting a reversal day today at some point = bulls have to defend today or the indices are going to drop and drop hard.

There will be a strong retracement from lower targets – trend entry is key to profiting from these moves down. They very rarely made easy any longer.

Chasing gets a trader lit up quickly when the tape gets moving.

Markets rallying with Bonds rallying… flipped for the first time in a long time, watch bonds, protection is going on again.