The collision of global markets and social mood

Thursday, May 24, 2012

Near-Term Levels And Other Things

Denmark launched its first inflation-linked bond today.  Just in time for deflation reassert itself.  Spain called for help to lower borrowing rates.  Help! is right.  Christine Lagarde gave the commencement address at Harvard's Kennedy School of Government.  It was pure globalist propaganda.  I'll have to do an entire post on it later.

Moving on, the latest falling wedges I've stumbled onto are on the weekly gold and silver charts. Check them out and keep track of them.  If they follow through, the shock waves would be considerable.

I'm watching two levels in the market for the near term, trying to keep it simple.  The 1330 area, and 1280 (or below).  Specifically, I want to see the S&P over Tuesday's 1328.49 or do a full test of the 200-day moving average.  1256 is also a Fibonacci extension target drawn from the same area that targeted the 1298 zone which seems to have been respected by the market.

If the market goes higher, it won't mean Europe is solved, and if it goes lower it won't mean Europe is doomed (although much of it is).  Markets fluctuate.  Do a backtest of news and you'll find zero correlation with the larger trend, which is to say that news does not affect the trend.

Therefore, I want to add shorts at higher levels, and get long at lower levels.






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