Happiness is..... Two markets that I wanted to rally, bounced...

Happiness is.....

Two markets that I wanted to rally, bounced beautifully overnight. Oil and copper. And of course the SPX. It has broken out of the triangle pattern I had highlighted – it actually gapped over the exact line. That triangle was part of a larger pattern which it still needs to overcome but what a start we had in the latest trading session. As I have mentioned many times, I still favour a topside break on Wall Street. Interestingly it looks like the NASDAQ might be the leader this time. I don’t mind if they take turns in leading. In the different sectors of the US market, XLP (consumer staples) went to a new all time high. Now that is interesting. Things you have to have such as FOOD. And we are having a little boom in milk products.

Still think commodities may well be back in favour in 2016. And don’t forget grains – or in other words – FOOD.

Is this one of the things that 2016 is going to be all about – feeding the world.

Our market has now had eight consecutive up-days which is obviously getting extended. However, interestingly in January this year we had twelve consecutive up-days. But what is really nice is that one of my longer term indicators on the XJO has broken clear of the downtrend from the high earlier in the year.

Another nice day in the iron ore futures including the distants.

I really am trying to cut back writing these notes every morning but the markets just seem to demand it!