AmenRa's Corner

A place where a skillful caddy always offers cool contemplation when it comes to your "stick" selection.

Creditcane™: Something's in the water...

SPX
Spinning top day (again). Midpoint above EMA(10). Still above all SMA's. No daily 3LB changes (reversal is 1258.84). QE2infinity. Still treading water. Que sera sera.



DXY
Spinning top day (maybe yesterday was engulfing). Midpoint above EMA(10). Held the 38.2% retrace (80.63). Still above SMA(144). No daily 3LB changes (reversal is 79.03).



VIX
Inverted hammer day (but we're not in a downtrend). Midpoint below EMA(10). Back below SMA(21). No daily 3LB changes (reversal is 15.45). Stuck in the "no fear" zone. Still has a monthly 3LB reversal.



GOLD
Spinning top day. Back above SMA(55). Midpoint below EMA(10). 0.0% retrace holding. Still below 14.6% retrace (1392.69) but didn't test the 23.6% retrace (1368.14). Daily 3LB reversal up (reversal is 1368.90). Must have the precious.



EURUSD
Bullish short day (failed bullish thrusting). Midpoint below EMA(10). Below its 38.2% retrace at 1.3121. Below all SMA's. No daily 3LB changes (reversal is 1.3395).



JNK
Bullish short day. Midpoint above EMA(10). Failing the Gann 4x1. Back above SMA(21) & SMA(89). No daily 3LB changes (reversal is 40.47).




10YR YIELD
Spinning top day. The 0.0% fibo retrace at 35.66 has held. Still below SMA(21). Below its 14.6% retrace (33.86). Midpoint below EMA(10). No daily 3LB changes (reversal is 32.36). Still holding its 23.6% retrace (32.75). Failing upper trendline.



CRB
Bullish long day. Midpoint above EMA(10). Back above SMA(21). No test of 0.0% retrace. No daily 3LB changes (reversal is 332.80). Back above 14.6% retrace (329.28).



XLF
Spinning top day. Midpoint above EMA(10). Still above all SMA's. No test of new 0.0% retrace. Back above the 14.6% retrace (16.20). No daily 3LB changes (reversal is 16.01).



IQI
Spinning top day (or is it the 2nd day of a morning star?). Midpoint below EMA(10). Back below SMA(21). Back below its 14.6% retrace (11.74). No daily 3LB changes (reversal is 11.52).



TLT
Spinning top day. Midpoint below EMA(10). Below all SMA's. Tested and failed its 76.4% retrace (92.50). No daily 3LB changes (reversal is 90.94).



AUDJPY
Spinning top day. Midpoint below EMA(10). Back below SMA(55). Below its 76.4% retrace (0.8226). Below lower trendline of current move. No daily 3LB changes (reversal is 0.8007).

LEFTBACK'S BOND REPORT

The Bond Report 1.11.11

HY outperformed IG again today across the board. We also had a mild steepener after a not-so-good auction of 3y was followed by slightly suspicious buying of the short end (to support B/D's brand new purchases at 1.03%?) after a POMO in the 7-10y range. Tomorrow's thrills and spills include a 10y auction at 1pm and the release of the next Ponzi, sorry we mean POMO, schedule at 2pm.

Corpies: LQD -0.05%; AGG -0.20%; JNK 0.30%; HYG 0.39%
Govies: TLT -0.56%; IEI -0.19%; TIP 0.04%
Hedgies: TBT 1.07%

We sold TIP today b/c we think that long duration will take a trip to the woodshed tomorrow and Thursday as we go into auctions of 10s and 30s and a PPI release.

We are 22% long HYG, 6% TIP, 3% LQD and hedged with 16% TBT. We are now looking to gradually offload HYG and will be reducing our position back down to 15% on strength, while looking to transition into LQD, AGG and TLT - over the next 3-4 weeks, perhaps?