OUT OF THE GATE EARLY

I have been talking about several things lately that are now coming to fruition.

First, I mentioned due to heavy commercial buying the EURO was going to rally, it has.

Second, I said last week I was looking to short the Dollar on a bounce but it might just freefall. It is freefalling today.

Third, I mentioned the Bond Market was due to decline and showed the huge commercial selling that was going on. This market is down big today.

Fourth, I showed a chart over the weekend projecting the next 5 days as up in stocks, and that is what I was looking for. We have roared out of the gate today upward.

Here we have the SP 500 and you can see we have a nice upward move developing. The 5 day forecast showed up coming into this week so this is no suprise. Nothing much left to say here except play the long side for now. Below is the Dollar Index which is crashing today. You can see the 3 point divergence at the high which often triggers large moves like what we are seeing. Now we have extended down a long ways in the indicator ahead of price, so this could be an exhaustion move.

Next we have Bonds. This move is just beginning it appears. There is something interesing developing here, a potential 2 consecutive inside bars pattern. These are good breakout patterns typically in either direction. Notice also here the 3 lower peaks in the oscillator, although the last one also has a lower price peak, so not the typical triple divergence by the textbook.

I expect these moves to continue for the rest of the week give or take a wiggle here or there.