Morning Corner 5.27.11

Friday's Open Thread Day (pre-holiday)

Will today be this...

Or this...

AmenRa's Corner

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

Creditcane™: GDP getting worse, initial claims WTE and a miraculous close higher. There will be blood.

SPX
Spinning top day again. Midpoint below EMA(10). Held SMA(55). Still below trend line (3/6/09-7/1/10). Held the 38.2% retrace (1324.16). No daily 3LB changes (reversal is 1329.47). QE2infinity. "JBTFD. Any questions?"



DXY
Bearish short day. Midpoint above EMA(10). No test of 0.0% retrace (72.70). No test of SMA(89). Failing its 38.2% retrace (75.99). No daily 3LB changes (reversal is 74.84).



VIX
Bearish long day. Midpoint below EMA(10). Now below all SMA's. Failed its 14.6% retrace (16.75). No daily 3LB changes (reversal is 18.40). Trying to escape the "no fear" zone.



GOLD
Spinning top day again. Midpoint above EMA(10). No test of 0.0% retrace (1577.40). Held SMA(21). Held its 23.6% retrace (1514.39). No daily 3LB changes (reversal is 1556.40). Holding above upper trend line. Must have the precious.



EURUSD
Bullish short day. Midpoint below EMA(10). Held SMA(89). Still below its 76.4% retrace (1.4346). No daily 3LB changes (reversal is 1.4323).



JNK
Bearish short day. Midpoint below EMA(10). Failing SMA(21). No test of 0.0% retrace (40.93). Failing its 23.6% retrace (40.61). No daily 3LB changes (reversal is 40.49).



10YR YIELD
Bearish long day. Still below all SMA's. Midpoint below EMA(10). Made a new 0.0% retrace (30.61). Still below the upper trend line. New low on daily 3LB (reversal is 32.30).



WTI
Bearish harami day. Above SMA(144). Midpoint above EMA(10). No test of 0.0% retrace (114.83). Above its 61.8% retrace (98.41). No dally 3LB changes (reversal is 111.41).



SILVER
Bearish thrusting day. Failed SMA(21). Midpoint above EMA(10). Back above the upper trend line. Tested and failed its 50.0% retrace (38.05). No daily 3LB changes (reversal is 33.49). ""You want delivery! You can't handle the delivery!"



BKX
Spinning top day. Midpoint below EMA(10). Below all SMA's. Held its 61.8% retrace (48.75). No daily 3LB changes (reversal is 49.51).



HYG/LQD
Bearish short day. Tested and failed the 23.6% retrace (0.8269). Below most SMA's (except SMA(233)). Midpoint below EMA(10). New low on daily 3LB (reversal is 0.8308).

WORLD WIDE PREMIERE JULY 1, 2011

Morning Corner 5.26.11

EWZ (weekly info)
-no change (below mid)
trend=no
direction=down (2 bars)
low= 71.67
rev= 79.63; mid= 75.65

The first letter in BRIC is not doing so well. After breaking below the rising wedge and getting below its SMA(89) it's trying to show strength by forming a bullish engulfing. We'll see.



RUXX (weekly info)
new low 654.29
trend=down
low= 654.29
rev= 726.04; mid= 690.17


The second letter in BRIC is actually doing worse than the first letter. The move down has not been violent…yet. But it's below the trend line (1/08-5/10) and looking to test its SMA(233). As long as commodities hold up Russia should be ok. A major move down in commodities will turn this slow walk down some steps into a frictionless slide down ice covered steps.



Nifty 50 (weekly info)
-no change (below mid)
trend=no
direction=up (2 bars)
high= 5927.50
rev= 5398.50; mid= 5663.00

The third letter in BRIC is looking to play catch up with Russia as it's now trading below its weekly 3LB reversal price. It's also broken below its lower trend line.



Shanghai Composite (weekly info)
new low 2858.46
trend=down
low= 2858.46
rev= 3030.02; mid= 2944.24


The fourth letter in BRIC has broken down also. The move down is accelerating. It's is now below its 50% retrace and SMA(55). It also failed its upper trend line (8/09-11/09). I thought the BRICs were leading us out of the recession.

AmenRa's Corner

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

Creditcane™: Where did the bulls find warp engines allowing them to escape the event horizon?

SPX
Spinning top day again. Midpoint below EMA(10). Held SMA(89). Further below trend line (3/6/09-7/1/10). Failing the 38.2% retrace (1324.16). No daily 3LB changes (reversal is 1329.47). QE2infinity. "JBTFD. Any questions?"



DXY
Doji day (didn't confirm dark cloud cover). Midpoint above EMA(10). No test of 0.0% retrace (72.70). Tested and failed SMA(89). Failed its 38.2% retrace (75.99). No daily 3LB changes (reversal is 74.84).



VIX
Bearish long day. Midpoint above EMA(10). Still below SMA(144), SMA(89) & SMA(55). Failing its 23.6% retrace (18.28). No daily 3LB changes (reversal is 18.40). Trying to escape the "no fear" zone.



GOLD
Spinning top day. Midpoint above EMA(10). No test of 0.0% retrace (1577.40). Held SMA(21). Above its 23.6% retrace (1514.39). No daily 3LB changes (reversal is 1556.40). Holding above upper trend line. Must have the precious.



EURUSD
Bearish short day. Midpoint below EMA(10). Back below SMA(55). Held SMA(89). Still below its 76.4% retrace (1.4346). No daily 3LB changes (reversal is 1.4323).



JNK
Doji day (possible bullish harami star). Midpoint below EMA(10). Failing SMA(21). No test of 0.0% retrace (40.93). Failing its 23.6% retrace (40.61). No daily 3LB changes (reversal is 40.49).



10YR YIELD
Spinning top day. Still below all SMA's. Midpoint below EMA(10). Tested and held its 0.0% retrace (30.98). Still below the upper trend line. No daily 3LB changes (reversal is 32.30).



WTI
Bullish long day (confirmed bullish piercing). Held SMA(144). Midpoint below EMA(10). No test of 0.0% retrace (114.83). Held its 61.8% retrace (98.41). No dally 3LB changes (reversal is 111.41).



SILVER
Bullish long day. Held SMA(89). Midpoint above EMA(10). Back above the upper trend line.
Above its 61.8% retrace (35.28). New high on daily 3LB (reversal is 33.49). ""You want delivery! You can't handle the delivery!"



EEM
Bullish engulfing day. Midpoint below EMA(10). Below all SMA's. Held its 61.8% retrace (46.61). No daily 3LB changes (reversal is 47.63).



Gold/Silver Ratio
(Weekly). After a double top it's heading lower. Silver is again outperforming gold. Probably means another hike is in the pipeline.

WORLD WIDE PREMIERE JULY 1, 2011

Morning Corner 5.25.11

90 Day UST (weekly info)
-no change (below mid)
trend=down
low= 0.020
rev= 0.090; mid= 0.055


Now trading above its weekly 3LB mid. Is the bond market beginning to stir?



DAX (weekly info)
-no change (above mid)
trend=no
direction=up (1 bar)
high= 7514.46
rev= 6664.40; mid= 7089.43

Germany is close to breaking down. That confirmed hanging man from the week ending 5/6/11 may be more ominous than expected. It may not be below the weekly 3LB mid but it is below its monthly 3LB mid. That's more bearish than the weekly.



CCI (weekly info)
-no change (below mid)
trend=no
direction=down (2 bars)
low= 631.82
rev= 690.05; mid= 661.19

The Continuos Commodity Index just can't make any headway from that long bearish week ending 5/6/11. It's treading water around its 23.6% retrace (633.69). But it's hard to tread when you're weighed down with an anchor. Plus the 23.6% sits right above the monthly 3LB reversal. All it takes is a little push and whoosh.

Who keeps playing this on the floor of the NYSE and in the elevators?