USD up mildly DOW up mildly Gold down US Basic Materials up a tad US Financials down a tad
Mindset for the day as of 9:00 am
With the Dow more or less positive on Friday the lead for the XJO should be up. The fly in the ointment is that we are sitting on a point where all could change.
I have a mental image of some kid on a dirt bike racing along a cliff edge. Each time he turns there is a spray of dirt and a moment of heart stopping panic, but he somehow seems to recover it without falling off. Well at the moment his back wheel is right on the cliff edge. Whether he will make it this time I don't know. he seems to be facing the right way and has an uncanny amount of acceleration that has saved him time and again, but he has a hell of a lot of momentum working against him this time and I am not sure he has the gas...
More technically, both the Weekly and Daily indicators are saying down. But they are also at locations where they could easily find support. I would be cautious. Probably not a day to open a position and then wander off for a few hours.
But then again what I have started to call deceptive days have been the norm recently. Optimism in the morning which fades in the afternoon.
As soon as you think you have the markets mood worked out, she changes on you.... And yes I am sure the market is a "she".
No noticeable change with the LME warehouse stocks - Aluminium starting to look sexy.
The XJO (daily) is still in the lower channel, Now sitting on the 100 day MA and the SAR so we can count on the Bulls thinking bounce. But by the same argument we are under the 20 day moving average, the RSI, Stochastic and MACD all have further room to fall, so the Bears will be saying down trend.
The weekly chart is still where all the action is. It is just on the Mid Bollinger support line, RSI and stochastics are still 50'ish, so it could go either way.
