Emini Trading Update – Thursday 28 Feb 2013 (14:28)
Here is what I see:
- Capital flight out of Japan, UK and Europe into the US
- So strength in US Dollar, weakness in all other currencies, Gold and Silver
- Commodities sector is weak partly because there is no global growth and partly because the US Dollar is going up (and commodities are priced in US Dollars)
- So weakness in Crude, Copper, Aussie and Canadian dollars
- The money has been flowing into Equities but they are now over-bought
- Now the money is favouring Bonds because they are over-sold and a flight to safety asset
We’re at the end of the month and we tend to have some strength for a day or two (from flow of pension, etc. funds into the market). The Better TRIN Oscillator is +25 so not over-bought quite yet, but above zero so could turn in the next day or two. And maybe the 40,500 tick chart has to make a final “Pull Back” to “End of Trend” sequence.
For the Emini, a break first below 1,500 and then below 1,480 would confirm the Professionals have spent the last week and a half getting out. So, heads up.
Good luck with your Emini trading.