Morning Corner 9.1.11

XLU (weekly info)
WEEKLY REVERSAL new high 33.04
direction=up (1 bar)
high= 33.04
rev= 31.70; mid= 32.37

If the economy was rosy then why did XLU have a weekly 3LB reversal up last week and confirming the move this week? It's now above all SMA's. It's approaching its 61.8% retrace.

Palladium (weekly info)
-no change (below mid)
high= 827.70
rev= 718.05; mid= 772.88

Palladium has been in a relatively tight range for most of 2011. It's currently above all SMA's. It's testing its 38.2% minor retrace. It also has a noticeable pattern (which may repeat next week).


BinT said...

...I majored in EE in college. Left it to go to med school. This is an amazing story, and it shows that even chipmakers can become buggy whip makers as time goes by, and it appears they have....

AmenRa said...

Initial Claims 409k down from a revised 421k (orig 417k).

AmenRa said...


Too many iPads?

QQQQ said...

Seems this has been going on forever. In 1983 I graduated from DeVry, went to work for National Semiconductor near SLC, UT. Worked 18 months to the day in the thin films division making memory chips when I got laid off. In 1985, the govt deregulated the price for imports into the US which let Jap companies sell chips to the US cheaper than we could make them. Lost my job with about 17,000 others around the country because of it. It's a brutal business in the chip makers.

QQQQ said...

re SPX, seems the economy just got better in just 1 min... sheesh

Jennifer said...

It will get worse in a minute too, that's the beauty of it.

AmenRa said...


There was some serious tweaking going on at ISM to prevent a sub 50 reading...

AmenRa said...

esp since the regional ISMs were horrible.

QQQQ said...

AR, you see the leangth of that 1 min candle!!?

can not trade as fast as HFT comp, we're just Hitchin' a Ride"

(bet ya'll gonna have this melody stuck in your heads all day...hehe)

QQQQ said...

Gold about same price now as it was Tuesday morning, seems it's winding itself up for a big move.

AmenRa said...


The better the national economic indicators the less need for Fed intervention. QE3 cheerleaders just got very nervous.

Bruce in Tennessee said...

"Iceland is no longer under an IMF program; here’s the IMF report (pdf) pronouncing the adjustment program successful. Indeed. Iceland still has high unemployment and is a long way from a full recovery; but it’s no longer in crisis, it has regained access to international capital markets, and has done all that with its society intact.

And it has done all that with very heterodox policies — debt repudiation, capital controls, and currency depreciation. It was as close as you can get to the polar opposite of the gold standard. And it has worked."

....Hey, Lefty! If you aren't back in London rioting, let me translate this for you:

"Damn. I was wrong. I'm sending back my Nobel by FedEx in the morning."


AmenRa said...

SPX: lower high and forming a bearish engulfing. Plus is just spent three days above its 50% retrace. Can it get a fourth?

Leftback said...

LOL. Greece will follow Iceland's example soon.

A warning to female traders in short shorts:

AmenRa said...


Especially when it's Greece's own auditors that are saying the bailout isn't working.

Andy T said...

Been out of pocket. Had a customer outting last blasted out of my mind. been nursing hangover all day.

Thinking about how I liked to taking Ben Tate with my last pick in last week's FF draft.

ben22 said...


do you ever try and trade a spinning top?

what do you do for confirmation if so?

Leftback said...

We are going to be in Europe next week, so we have been de-risking this week. Not surprised by the pullback and wouldn't be surprised to see follow through selling on Tuesday.

REITs were beaten with a stick today and we were knife catching. We like to trade around a core holding in NLY. We don't really think Obama is going to forgive people's mortgages, that job losses mean defaults will be widespread, or that long end yields are going to shoot to the moon, so risks are massively overplayed across this sector. The yields on these are now quite eye-popping, between 15-23%.

To raise cash we dumped all of the NOK we bought in the big downdraft. We made 20-30% on that swing. Ka-ching.

AmenRa said...


Don't eff with spinning tops. They are like dojis but with a larger range.

AmenRa said...

aka days of indecision.

Leftback said...

Have a great week, everyone. Back on the 12th.

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